FIDELITY ADVISOR SERIES VI, N-30D, 1998-01-28

FIDELITY ADVISOR SERIES VI
N-30D, 1998-01-28

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(2_FIDELITY_LOGOS)FIDELITY ADVISOR

(REGISTERED TRADEMARK)
INTERMEDIATE MUNICIPAL INCOME FUND - CLASS A, CLASS T, CLASS B
AND CLASS C
ANNUAL REPORT
NOVEMBER 30, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 19 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT CHANGES 22 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS.

INVESTMENTS 23 A COMPLETE LIST OF THE FUND'S INVESTMENTS
WITH THEIR MARKET VALUES.

FINANCIAL STATEMENTS 30 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 39 NOTES TO THE FINANCIAL STATEMENTS.

REPORT OF INDEPENDENT 48 THE AUDITORS' OPINION.
ACCOUNTANTS

DISTRIBUTIONS 49

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION
OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY ADVISOR FUND, INCLUDING CHARGES
AND EXPENSES, CONTACT YOUR
INVESTMENT PROFESSIONAL FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

(PHOTO_OF_EDWARD_C_JOHNSON_3D)DEAR SHAREHOLDER:
Although financial turmoil in Pacific Basin countries was a catalyst
for significant volatility in U.S. markets in late October and into
November, the Standard & Poor's 500 Index has risen more than 31%
year-to-date, almost three times its historical annual average.
Meanwhile, bond markets - primarily influenced by a relatively steady
flow of positive news on the inflation front - continued to post solid
returns through the first 11 months of 1997.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
The longer your investment time frame, the less likely it is that you
will be affected by short-term market volatility. A 10-year investment
horizon appropriate for saving for a college education, for example,
enables you to weather market cycles in a long-term fund, which may
have a higher risk potential, but also has a higher potential rate of
return.
An intermediate-length fund could make sense if your investment
horizon is two to four years, while a short-term bond fund could be
the right choice if you need your money in one or two years.
If your time horizon is less than a year, you might want to consider
moving some of your bond investment into a money market fund. These
funds seek income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that there is no assurance that a money market fund will
achieve its goal of maintaining a stable net asset value of $1.00 per
share, and that these types of funds are neither insured nor
guaranteed by any agency of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
Remember to contact your investment professional if you need help with
your investments.
Best regards,
Edward C. Johnson 3d
ADVISOR INTERMEDIATE MUNICIPAL INCOME FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate historical performance. You can
look at the total percentage change in value, the average annual
percentage change or the growth of a hypothetical $10,000 investment.
Total return reflects the change in the value of an investment,
assuming reinvestment of the class' dividend income and capital gains
(the profits earned upon the sale of securities that have grown in
value). You can also look at the class' income, as reflected in its
yield, to measure performance. The initial offering of Class A shares
took place on September 3, 1996. Class A shares bear a 0.15% 12b-1 fee
that is reflected in returns after September 3, 1996. Returns between
September 10, 1992 (the date Class T shares were first offered) and
September 3, 1996 are those of Class T shares and reflect Class T
shares' 0.25% 12b-1 fee. Returns prior to September 10, 1992 are those
of the Institutional Class, the original class of the fund. Had Class
A shares' 12b-1 fee been reflected, returns prior to September 10,
1992 would have been lower. Effective August 1, 1997, the maximum
3.25% sales charge on Class A shares was increased to 3.75%. If
Fidelity had not reimbursed certain class expenses, the total returns
and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 6.42% 30.87% 91.25%
CLASS A

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 2.43% 25.96% 84.08%
CLASS A (INCL. MAX. 3.75% SALES CHARGE)

LEHMAN BROTHERS 1-17 YEAR MUNICIPAL 6.45% N/A N/A
BOND INDEX

INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE 5.50% 34.65% 99.90%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. You can compare Class A's returns to those of the Lehman
Brothers 1-17 Year Municipal Bond Index - a total return performance
benchmark for investment-grade municipal bonds with maturities between
one and 17 years. To measure how Class A's performance stacked up
against its peers, you can compare it to the intermediate municipal
debt funds average, which reflects the performance of mutual funds
with similar objectives tracked by Lipper Analytical Services, Inc.
The past one year average represents a peer group of 141 mutual funds.
These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

ADVISOR INTERMEDIATE MUNICIPAL INCOME - CLASS A 6.42% 5.53% 6.70%

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 2.43% 4.72% 6.29%
CLASS A (INCL. MAX. 3.75% SALES CHARGE)

LEHMAN BROTHERS 1-17 YEAR MUNICIPAL BOND INDEX 6.45% N/A N/A

INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE 5.50% 6.12% 7.16%

AVERAGE ANNUAL TOTAL RETURNS take Class A's cumulative return and show
you what would have happened if Class A had performed at a constant
rate each year.
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19971130 19971212 134507 S00000000000001
FA Int Muni Inc -CL A LB Municipal Bond
00262 LB015
1987/11/30 9625.00 10000.00
1987/12/31 9721.10 10145.10
1988/01/31 10069.70 10506.47
1988/02/29 10110.78 10617.52
1988/03/31 9962.95 10494.36
1988/04/30 10013.04 10574.12
1988/05/31 10044.72 10543.56
1988/06/30 10115.33 10697.81
1988/07/31 10167.96 10767.56
1988/08/31 10172.83 10777.03
1988/09/30 10284.45 10972.10
1988/10/31 10406.80 11165.21
1988/11/30 10372.94 11062.93
1988/12/31 10438.39 11176.11
1989/01/31 10544.03 11407.23
1989/02/28 10481.06 11277.07
1989/03/31 10447.82 11250.12
1989/04/30 10595.49 11517.20
1989/05/31 10753.71 11756.41
1989/06/30 10871.74 11916.06
1989/07/31 10980.23 12078.24
1989/08/31 10944.66 11959.99
1989/09/30 10942.49 11924.35
1989/10/31 11030.25 12070.19
1989/11/30 11150.93 12281.42
1989/12/31 11251.45 12381.88
1990/01/31 11214.75 12323.31
1990/02/28 11314.33 12432.99
1990/03/31 11333.61 12436.72
1990/04/30 11217.06 12346.68
1990/05/31 11421.57 12616.21
1990/06/30 11516.14 12727.10
1990/07/31 11655.11 12914.19
1990/08/31 11587.35 12726.68
1990/09/30 11618.38 12733.93
1990/10/31 11748.31 12964.92
1990/11/30 11935.75 13225.65
1990/12/31 11967.97 13283.18
1991/01/31 12101.60 13461.44
1991/02/28 12211.78 13578.56
1991/03/31 12219.98 13583.44
1991/04/30 12330.76 13764.10
1991/05/31 12429.55 13886.47
1991/06/30 12437.10 13872.72
1991/07/31 12561.67 14041.69
1991/08/31 12662.05 14226.62
1991/09/30 12739.65 14411.85
1991/10/31 12876.46 14541.56
1991/11/30 12908.91 14582.13
1991/12/31 13122.22 14895.06
1992/01/31 13213.89 14929.02
1992/02/29 13229.05 14933.80
1992/03/31 13178.47 14939.32
1992/04/30 13270.64 15072.28
1992/05/31 13416.20 15249.68
1992/06/30 13592.27 15505.57
1992/07/31 13885.00 15970.43
1992/08/31 13782.34 15814.72
1992/09/30 13912.62 15918.15
1992/10/31 13813.64 15761.67
1992/11/30 14066.04 16043.96
1992/12/31 14083.03 16207.77
1993/01/31 14243.17 16396.27
1993/02/28 14638.62 16989.32
1993/03/31 14493.41 16809.74
1993/04/30 14595.35 16979.35
1993/05/31 14656.77 17074.78
1993/06/30 14811.26 17359.76
1993/07/31 14828.08 17382.50
1993/08/31 15100.90 17744.40
1993/09/30 15257.12 17946.51
1993/10/31 15271.44 17981.15
1993/11/30 15152.40 17822.73
1993/12/31 15411.30 18198.97
1994/01/31 15554.28 18406.80
1994/02/28 15165.90 17930.07
1994/03/31 14573.36 17199.95
1994/04/30 14702.35 17345.81
1994/05/31 14833.94 17496.20
1994/06/30 14727.34 17389.30
1994/07/31 14932.53 17708.04
1994/08/31 14989.00 17769.31
1994/09/30 14821.12 17508.46
1994/10/31 14595.76 17197.51
1994/11/30 14276.82 16886.58
1994/12/31 14535.25 17258.25
1995/01/31 14901.02 17751.49
1995/02/28 15279.14 18267.70
1995/03/31 15446.27 18477.60
1995/04/30 15441.84 18499.40
1995/05/31 15794.52 19089.72
1995/06/30 15709.66 18923.64
1995/07/31 15811.92 19103.04
1995/08/31 16025.65 19345.26
1995/09/30 16128.02 19467.72
1995/10/31 16300.05 19750.78
1995/11/30 16487.87 20078.44
1995/12/31 16598.68 20271.40
1996/01/31 16709.43 20424.45
1996/02/29 16654.84 20286.58
1996/03/31 16490.94 20027.32
1996/04/30 16438.28 19970.64
1996/05/31 16436.51 19962.65
1996/06/30 16563.37 20180.05
1996/07/31 16692.61 20363.68
1996/08/31 16691.42 20358.80
1996/09/30 16838.01 20643.82
1996/10/31 17002.75 20877.30
1996/11/30 17297.63 21259.36
1996/12/31 17232.36 21170.07
1997/01/31 17282.09 21210.08
1997/02/28 17426.34 21404.79
1997/03/31 17221.82 21119.46
1997/04/30 17352.72 21296.23
1997/05/31 17537.06 21616.53
1997/06/30 17720.34 21846.74
1997/07/31 18161.76 22451.90
1997/08/31 18005.38 22241.52
1997/09/30 18207.55 22505.53
1997/10/31 18309.39 22650.24
1997/11/28 18407.97 22783.42
IMATRL PRASUN SHR__CHT 19971130 19971212 134512 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Intermediate Municipal Income Fund -
Class A on November 30, 1987, and the current maximum 3.75% sales
charge was paid. As the chart shows, by November 30, 1997, the value
of the investment would have grown to $18,408 - an 84.08% increase on
the initial investment. For comparison, look at how the Lehman
Brothers Municipal Bond Index, which reflects the performance of the
investment-grade municipal bond market, did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment would have grown to $22,783 - a 127.83% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in the
opposite direction of interest
rates. In turn, the share price,
return and yield of a fund that
invests in bonds will vary. That
means if you sell your shares
during a market downturn, you
might lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)

TOTAL RETURN COMPONENTS
YEARS ENDED NOVEMBER 30,

1997 1996 1995 1994 1993

DIVIDEND RETURN 4.58% 4.58% 5.06% 4.18% 5.13%

CAPITAL APPRECIATION RETURN 1.84% 0.29% 10.43% -9.96% 2.59%

TOTAL RETURN 6.42% 4.87% 15.49% -5.78% 7.72%

TOTAL RETURN COMPONENTS include both dividend returns and capital
appreciation returns. A dividend return reflects the actual dividends
paid by the class. A capital appreciation return reflects both the
amount paid by the class to shareholders as capital gain distributions
and changes in the class' share price. Both returns assume the
dividends or capital gains paid by the class are reinvested, if any,
and exclude the effect of sales charges.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

DIVIDENDS PER SHARE 3.70(CENTS) 22.90(CENTS) 45.94(CENTS)

ANNUALIZED DIVIDEND RATE 4.26% 4.35% 4.42%

30-DAY ANNUALIZED YIELD 3.68% - -

30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 5.75% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set
period. If you annualize this number, based on an average net asset
value of $10.56 over the past one month, $10.51 over the past six
months and $10.40 over the past one year, you can compare the class'
income over these three periods. The 30-day annualized YIELD is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period.
It also helps you to compare funds from different companies on an
equal basis. The offering share price used in the calculation of the
yield includes the effect of Class A's maximum 3.75% sales charge. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the class' tax-free yield, if you're in the 36%
federal tax bracket, but does not reflect payment of the federal
alternative minimum tax, if applicable. If Fidelity had not reimbursed
certain class expenses, the yield and tax-equivalent yield would have
been 3.61% and 5.64%, respectively.
ADVISOR INTERMEDIATE MUNICIPAL INCOME FUND - CLASS T
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate historical performance. You can
look at the total percentage change in value, the average annual
percentage change or the growth of a hypothetical $10,000 investment.
Total return reflects the change in the value of an investment,
assuming reinvestment of the class' dividend income and capital gains
(the profits earned upon the sale of securities that have grown in
value). You can also look at the class' income, as reflected in its
yield, to measure performance. The initial offering of Class T shares
took place on September 10, 1992. Class T shares bear a 0.25% 12b-1
fee that is reflected in returns after September 10, 1992. Returns
prior to that date are those of Institutional Class, the original
class of the fund. Had Class T shares' 12b-1 fee been reflected,
returns prior to September 10, 1992 would have been lower. If Fidelity
had not reimbursed certain class expenses, the total returns and
dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 6.21% 30.58% 90.83%
CLASS T

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 3.29% 26.99% 85.58%
CLASS T (INCL. MAX. 2.75% SALES CHARGE)

LEHMAN BROTHERS 1-17 YEAR MUNICIPAL 6.45% N/A N/A
BOND INDEX

INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE 5.50% 34.65% 99.90%

CUMULATIVE TOTAL RETURNS show Class T's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. You can compare Class T's returns to those of the Lehman
Brothers 1-17 Year Municipal Bond Index - a total return performance
benchmark for investment-grade municipal bonds with maturities between
one and 17 years.
To measure how Class T's performance stacked up against its peers, you
can compare it to the intermediate municipal debt funds average, which
reflects the performance of mutual funds with similar objectives
tracked by Lipper Analytical Services, Inc. The past one year average
represents a peer group of 141 mutual funds. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effect
of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 6.21% 5.48% 6.68%
CLASS T

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 3.29% 4.89% 6.38%
CLASS T (INCL. MAX. 2.75% SALES CHARGE)

LEHMAN BROTHERS 1-17 YEAR MUNICIPAL 6.45% N/A N/A
BOND INDEX

INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE 5.50% 6.12% 7.16%

AVERAGE ANNUAL TOTAL RETURNS take Class T's cumulative return and show
you
what would have happened if Class T had performed at a constant rate
each year.
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19971130 19971212 134601 S00000000000001
FA Int Muni Inc -CL T LB Municipal Bond
00289 LB015
1987/11/30 9725.00 10000.00
1987/12/31 9822.10 10145.10
1988/01/31 10174.32 10506.47
1988/02/29 10215.82 10617.52
1988/03/31 10066.46 10494.36
1988/04/30 10117.07 10574.12
1988/05/31 10149.08 10543.56
1988/06/30 10220.42 10697.81
1988/07/31 10273.60 10767.56
1988/08/31 10278.52 10777.03
1988/09/30 10391.30 10972.10
1988/10/31 10514.92 11165.21
1988/11/30 10480.71 11062.93
1988/12/31 10546.84 11176.11
1989/01/31 10653.58 11407.23
1989/02/28 10589.96 11277.07
1989/03/31 10556.37 11250.12
1989/04/30 10705.57 11517.20
1989/05/31 10865.44 11756.41
1989/06/30 10984.69 11916.06
1989/07/31 11094.31 12078.24
1989/08/31 11058.37 11959.99
1989/09/30 11056.18 11924.35
1989/10/31 11144.85 12070.19
1989/11/30 11266.79 12281.42
1989/12/31 11368.35 12381.88
1990/01/31 11331.26 12323.31
1990/02/28 11431.89 12432.99
1990/03/31 11451.36 12436.72
1990/04/30 11333.60 12346.68
1990/05/31 11540.24 12616.21
1990/06/30 11635.78 12727.10
1990/07/31 11776.20 12914.19
1990/08/31 11707.73 12726.68
1990/09/30 11739.09 12733.93
1990/10/31 11870.37 12964.92
1990/11/30 12059.76 13225.65
1990/12/31 12092.31 13283.18
1991/01/31 12227.33 13461.44
1991/02/28 12338.66 13578.56
1991/03/31 12346.95 13583.44
1991/04/30 12458.87 13764.10
1991/05/31 12558.68 13886.47
1991/06/30 12566.31 13872.72
1991/07/31 12692.18 14041.69
1991/08/31 12793.60 14226.62
1991/09/30 12872.01 14411.85
1991/10/31 13010.24 14541.56
1991/11/30 13043.03 14582.13
1991/12/31 13258.56 14895.06
1992/01/31 13351.18 14929.02
1992/02/29 13366.49 14933.80
1992/03/31 13315.38 14939.32
1992/04/30 13408.52 15072.28
1992/05/31 13555.59 15249.68
1992/06/30 13733.49 15505.57
1992/07/31 14029.26 15970.43
1992/08/31 13925.53 15814.72
1992/09/30 14057.17 15918.15
1992/10/31 13957.16 15761.67
1992/11/30 14212.18 16043.96
1992/12/31 14229.35 16207.77
1993/01/31 14391.15 16396.27
1993/02/28 14790.71 16989.32
1993/03/31 14643.99 16809.74
1993/04/30 14746.99 16979.35
1993/05/31 14809.05 17074.78
1993/06/30 14965.14 17359.76
1993/07/31 14982.14 17382.50
1993/08/31 15257.79 17744.40
1993/09/30 15415.64 17946.51
1993/10/31 15430.11 17981.15
1993/11/30 15309.83 17822.73
1993/12/31 15571.42 18198.97
1994/01/31 15715.89 18406.80
1994/02/28 15323.47 17930.07
1994/03/31 14724.77 17199.95
1994/04/30 14855.10 17345.81
1994/05/31 14988.06 17496.20
1994/06/30 14880.35 17389.30
1994/07/31 15087.68 17708.04
1994/08/31 15144.72 17769.31
1994/09/30 14975.11 17508.46
1994/10/31 14747.40 17197.51
1994/11/30 14425.15 16886.58
1994/12/31 14686.26 17258.25
1995/01/31 15055.84 17751.49
1995/02/28 15437.88 18267.70
1995/03/31 15606.75 18477.60
1995/04/30 15602.28 18499.40
1995/05/31 15958.62 19089.72
1995/06/30 15872.88 18923.64
1995/07/31 15976.20 19103.04
1995/08/31 16192.15 19345.26
1995/09/30 16295.59 19467.72
1995/10/31 16469.40 19750.78
1995/11/30 16659.18 20078.44
1995/12/31 16771.13 20271.40
1996/01/31 16883.03 20424.45
1996/02/29 16827.88 20286.58
1996/03/31 16662.27 20027.32
1996/04/30 16609.07 19970.64
1996/05/31 16607.28 19962.65
1996/06/30 16735.46 20180.05
1996/07/31 16866.04 20363.68
1996/08/31 16864.84 20358.80
1996/09/30 17011.73 20643.82
1996/10/31 17193.39 20877.30
1996/11/30 17473.12 21259.36
1996/12/31 17423.26 21170.07
1997/01/31 17455.10 21210.08
1997/02/28 17598.27 21404.79
1997/03/31 17390.13 21119.46
1997/04/30 17520.88 21296.23
1997/05/31 17722.60 21616.53
1997/06/30 17888.98 21846.74
1997/07/31 18333.03 22451.90
1997/08/31 18173.54 22241.52
1997/09/30 18376.16 22505.53
1997/10/31 18459.95 22650.24
1997/11/28 18558.01 22783.42
IMATRL PRASUN SHR__CHT 19971130 19971212 134603 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Intermediate Municipal Income Fund -
Class T on November 30, 1987, and the current maximum 2.75% sales
charge was paid. As the chart shows, by November 30, 1997, the value
of the investment would have grown to $18,558 - an 85.58% increase on
the initial investment. For comparison, look at how the Lehman
Brothers Municipal Bond Index, which reflects the performance of the
investment-grade municipal bond market, did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment would have grown to $22,783 - a 127.83% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in the
opposite direction of interest
rates. In turn, the share price,
return and yield of a fund that
invests in bonds will vary. That
means if you sell your shares
during a market downturn, you
might lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)

TOTAL RETURN COMPONENTS
YEARS ENDED NOVEMBER 30,

1997 1996 1995 1994 1993

DIVIDEND RETURN 4.47% 4.60% 5.06% 4.18% 5.13%

CAPITAL APPRECIATION RETURN 1.74% 0.29% 10.43% -9.96% 2.59%

TOTAL RETURN 6.21% 4.89% 15.49% -5.78% 7.72%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

DIVIDENDS PER SHARE 3.61(CENTS) 22.37(CENTS) 44.87(CENTS)

ANNUALIZED DIVIDEND RATE 4.16% 4.25% 4.31%

30-DAY ANNUALIZED YIELD 3.63% - -

30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 5.67% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set
period. If you annualize this number, based on an average net asset
value of $10.56 over the past one month, $10.51 over the past six
months and $10.41 over the past one year, you can compare the class'
income over these three periods. The 30-day annualized YIELD is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period.
It also helps you to compare funds from different companies on an
equal basis. The offering share price used in the calculation of the
yield includes the effect of Class T's maximum 2.75% sales charge. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the class' tax-free yield, if you're in the 36%
federal tax bracket, but does not reflect payment of the federal
alternative minimum tax, if applicable. If Fidelity had not reimbursed
certain class expenses, the yield and tax-equivalent yield would have
been 3.59% and 5.61%, respectively.
ADVISOR INTERMEDIATE MUNICIPAL INCOME FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate historical performance. You can
look at the total percentage change in value, the average annual
percentage change or the growth of a hypothetical $10,000 investment.
Total return reflects the change in the value of an investment,
assuming reinvestment of the class' dividend income and capital gains
(the profits earned upon the sale of securities that have grown in
value). You can also look at the class' income, as reflected in its
yield, to measure performance.
The initial offering of Class B shares took place on June 30, 1994.
Class B shares bear a 0.90% 12b-1/shareholder service fee (1.00% prior
to January 1, 1996) that is reflected in returns after June 30, 1994.
Returns between September 10, 1992 (the date Class T shares were first
offered) and June 30, 1994 are those of Class T shares and reflect
Class T shares' 0.25% 12b-1 fee. Returns prior to September 10, 1992
are those of Institutional Class, the original class of the fund. Had
Class B shares' 12b-1 fee been reflected, returns prior to June 30,
1994 would have been lower. Class B shares' contingent deferred sales
charges included in the past one year, past five years and past 10
years total return figures are 3%, 0% and 0%, respectively. If
Fidelity had not reimbursed certain class expenses, the total returns
and dividends would have been lower.
CUMULATIVE TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 5.54% 27.42% 86.22%
CLASS B

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 2.54% 27.42% 86.22%
CLASS B (INCL. CONTINGENT DEFERRED SALES CHARGE)

LEHMAN BROTHERS 1-17 YEAR MUNICIPAL 6.45% N/A N/A
BOND INDEX

INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE 5.50% 34.65% 99.90%

</TABLE>

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. You can compare Class B's returns to those of the Lehman
Brothers 1-17 Year Municipal Bond Index - a total return performance
benchmark for investment-grade municipal bonds with maturities between
one and 17 years. To measure how Class B's performance stacked up
against its peers, you can compare it to the intermediate municipal
debt funds average, which reflects the performance of mutual funds
with similar objectives tracked by Lipper Analytical Services, Inc.
The past one year average represents a peer group of 141 mutual funds.
These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 5.54% 4.97% 6.41%
CLASS B

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 2.54% 4.97% 6.41%
CLASS B (INCL. CONTINGENT DEFERRED SALES CHARGE)

LEHMAN BROTHERS 1-17 YEAR MUNICIPAL 6.45% N/A N/A
BOND INDEX

INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE 5.50% 6.12% 7.16%

AVERAGE ANNUAL TOTAL RETURNS take Class Bs' cumulative return and show
you what would have happened if Class B had performed at a constant
rate each year.
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19971130 19971212 134538 S00000000000001
FA Int Muni Inc -CL B LB Municipal Bond
00689 LB015
1987/11/30 10000.00 10000.00
1987/12/31 10099.85 10145.10
1988/01/31 10462.03 10506.47
1988/02/29 10504.70 10617.52
1988/03/31 10351.12 10494.36
1988/04/30 10403.16 10574.12
1988/05/31 10436.07 10543.56
1988/06/30 10509.43 10697.81
1988/07/31 10564.11 10767.56
1988/08/31 10569.17 10777.03
1988/09/30 10685.14 10972.10
1988/10/31 10812.26 11165.21
1988/11/30 10777.08 11062.93
1988/12/31 10845.08 11176.11
1989/01/31 10954.84 11407.23
1989/02/28 10889.41 11277.07
1989/03/31 10854.88 11250.12
1989/04/30 11008.30 11517.20
1989/05/31 11172.69 11756.41
1989/06/30 11295.31 11916.06
1989/07/31 11408.03 12078.24
1989/08/31 11371.08 11959.99
1989/09/30 11368.82 11924.35
1989/10/31 11460.00 12070.19
1989/11/30 11585.39 12281.42
1989/12/31 11689.82 12381.88
1990/01/31 11651.69 12323.31
1990/02/28 11755.15 12432.99
1990/03/31 11775.18 12436.72
1990/04/30 11654.09 12346.68
1990/05/31 11866.57 12616.21
1990/06/30 11964.82 12727.10
1990/07/31 12109.21 12914.19
1990/08/31 12038.80 12726.68
1990/09/30 12071.04 12733.93
1990/10/31 12206.04 12964.92
1990/11/30 12400.78 13225.65
1990/12/31 12434.25 13283.18
1991/01/31 12573.09 13461.44
1991/02/28 12687.57 13578.56
1991/03/31 12696.09 13583.44
1991/04/30 12811.18 13764.10
1991/05/31 12913.81 13886.47
1991/06/30 12921.66 13872.72
1991/07/31 13051.09 14041.69
1991/08/31 13155.37 14226.62
1991/09/30 13236.00 14411.85
1991/10/31 13378.14 14541.56
1991/11/30 13411.86 14582.13
1991/12/31 13633.48 14895.06
1992/01/31 13728.72 14929.02
1992/02/29 13744.47 14933.80
1992/03/31 13691.91 14939.32
1992/04/30 13787.68 15072.28
1992/05/31 13938.91 15249.68
1992/06/30 14121.84 15505.57
1992/07/31 14425.97 15970.43
1992/08/31 14319.31 15814.72
1992/09/30 14454.67 15918.15
1992/10/31 14351.83 15761.67
1992/11/30 14614.07 16043.96
1992/12/31 14631.72 16207.77
1993/01/31 14798.10 16396.27
1993/02/28 15208.95 16989.32
1993/03/31 15058.09 16809.74
1993/04/30 15164.00 16979.35
1993/05/31 15227.82 17074.78
1993/06/30 15388.32 17359.76
1993/07/31 15405.80 17382.50
1993/08/31 15689.25 17744.40
1993/09/30 15851.56 17946.51
1993/10/31 15866.44 17981.15
1993/11/30 15742.75 17822.73
1993/12/31 16011.74 18198.97
1994/01/31 16160.29 18406.80
1994/02/28 15756.78 17930.07
1994/03/31 15141.16 17199.95
1994/04/30 15275.17 17345.81
1994/05/31 15411.89 17496.20
1994/06/30 15301.13 17389.30
1994/07/31 15499.06 17708.04
1994/08/31 15543.99 17769.31
1994/09/30 15343.58 17508.46
1994/10/31 15115.48 17197.51
1994/11/30 14774.88 16886.58
1994/12/31 15032.60 17258.25
1995/01/31 15399.54 17751.49
1995/02/28 15780.97 18267.70
1995/03/31 15943.34 18477.60
1995/04/30 15928.50 18499.40
1995/05/31 16281.69 19089.72
1995/06/30 16183.82 18923.64
1995/07/31 16294.57 19103.04
1995/08/31 16488.23 19345.26
1995/09/30 16583.84 19467.72
1995/10/31 16750.21 19750.78
1995/11/30 16931.92 20078.44
1995/12/31 17019.31 20271.40
1996/01/31 17140.81 20424.45
1996/02/29 17075.72 20286.58
1996/03/31 16882.14 20027.32
1996/04/30 16836.05 19970.64
1996/05/31 16808.53 19962.65
1996/06/30 16946.04 20180.05
1996/07/31 17068.68 20363.68
1996/08/31 17057.63 20358.80
1996/09/30 17197.08 20643.82
1996/10/31 17354.41 20877.30
1996/11/30 17644.64 21259.36
1996/12/31 17568.44 21170.07
1997/01/31 17608.80 21210.08
1997/02/28 17744.56 21404.79
1997/03/31 17525.01 21119.46
1997/04/30 17647.43 21296.23
1997/05/31 17823.61 21616.53
1997/06/30 17998.76 21846.74
1997/07/31 18418.15 22451.90
1997/08/31 18265.14 22241.52
1997/09/30 18458.99 22505.53
1997/10/31 18532.98 22650.24
1997/11/28 18621.50 22783.42
IMATRL PRASUN SHR__CHT 19971130 19971212 134542 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Intermediate Municipal Income Fund -
Class B on November 30, 1987. As the chart shows, by November 30,
1997, the value of the investment would have been $18,622 - an 86.22%
increase on the initial investment. For comparison, look at how the
Lehman Brothers Municipal Bond Index, which reflects the performance
of the investment-grade municipal bond market, did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 would have grown to $22,783 - a 127.83% increase.
UNDERSTANDING
PERFORMANCE
HOW A FUND DID YESTERDAY IS
NO GUARANTEE OF HOW IT WILL DO
TOMORROW. BOND PRICES, FOR
EXAMPLE, GENERALLY MOVE IN
THE OPPOSITE DIRECTION OF
INTEREST RATES. IN TURN, THE SHARE
PRICE, RETURN AND YIELD OF A
FUND THAT INVESTS IN BONDS WILL
VARY. THAT MEANS IF YOU SELL
YOUR SHARES DURING A MARKET
DOWNTURN, YOU MIGHT LOSE
MONEY. BUT IF YOU CAN RIDE OUT
THE MARKET'S UPS AND DOWNS,
YOU MAY HAVE A GAIN.
(CHECKMARK)
TOTAL RETURN COMPONENTS
YEARS ENDED NOVEMBER 30,

1997 1996 1995 1994 1993

DIVIDEND RETURN 3.80% 3.92% 4.17% 3.81% 5.13%

CAPITAL APPRECIATION RETURN 1.74% 0.29% 10.43% -9.96% 2.59%

TOTAL RETURN 5.54% 4.21% 14.60% -6.15% 7.72%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

DIVIDENDS PER SHARE 3.05(CENTS) 18.95(CENTS) 38.21(CENTS)

ANNUALIZED DIVIDEND RATE 3.51% 3.60% 3.67%

30-DAY ANNUALIZED YIELD 3.08% - -

30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 4.81% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set
period. If you annualize this number, based on an average net asset
value of $10.56 over the past one month, $10.51 over the past six
months and $10.40 over the past one year, you can compare the class'
income over these three periods. The 30-day annualized YIELD is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period. It
also helps you compare funds from different companies on an equal
basis. The offering share price used in the calculation of the yield
excludes the effect of Class B's contingent deferred sales charge. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the class' tax-free yield, if you're in the 36%
federal tax bracket, but does not reflect payment of the federal
alternative minimum tax, if applicable.
ADVISOR INTERMEDIATE MUNICIPAL INCOME FUND - CLASS C
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate historical performance. You can
look at the total percentage change in value, the average annual
percentage change, or the growth of a hypothetical $10,000 investment.
Total return reflects the change in the value of an investment,
assuming reinvestment of the class' dividend income and capital gains
(the profits earned upon the sale of securities that have grown in
value). You can also look at the class' income, as reflected in its
yield, to measure performance.
The initial offering of Class C shares took place on November 3, 1997.
Class C shares bear a 1.00% 12b-1/shareholder service fee that is
reflected in returns after November 3, 1997. Returns between June 30,
1994 and November 3, 1997 are those of Class B shares and reflect
Class B shares' 0.90% 12b-1 fee (1.00% prior to January 1, 1996).
Returns between September 10, 1992 (the date Class T shares were first
offered) and June 30, 1994 are those of Class T shares and reflect
Class T shares' 0.25% 12b-1 fee. Returns prior to September 10, 1992
are those of Institutional Class, the original class of the fund. Had
Class C shares' 12b-1 fee been reflected, returns prior to November 3,
1997 would have been lower. Class C's contingent deferred sales
charges included in the past one year total return figure is 1.00%. If
Fidelity had not reimbursed certain class expenses, the total returns
and dividends would have been lower.
CUMULATIVE TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 5.54% 27.44% 86.26%
CLASS C

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 4.54% 27.44% 86.26%
CLASS C (INCL. CONTINGENT DEFERRED SALES CHARGE)

LEHMAN BROTHERS 1-17 YEAR MUNICIPAL 6.45% N/A N/A
BOND INDEX

INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE 5.50% 34.65% 99.90%

</TABLE>

CUMULATIVE TOTAL RETURNS show Class C's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. You can compare Class C's returns to those of the Lehman
Brothers 1-17 Year Municipal Bond Index - a total return performance
benchmark for investment-grade municipal bonds with maturities between
one and 17 years. To measure how Class C's performance stacked up
against its peers, you can compare it to the intermediate municipal
debt funds average, which reflects the performance of mutual funds
with similar objectives tracked by Lipper Analytical Services, Inc.
The past one year average represents a peer group of 141 mutual funds.
These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 5.54% 4.97% 6.42%
CLASS C

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 4.54% 4.97% 6.42%
CLASS C (INCL. CONTINGENT DEFERRED SALES CHARGE)

LEHMAN BROTHERS 1-17 YEAR MUNICIPAL 6.45% N/A N/A
BOND INDEX

INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE 5.50% 6.12% 7.16%

AVERAGE ANNUAL TOTAL RETURNS take Class Cs' cumulative return and show
you what would have happened if Class C had performed at a constant
rate each year.
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19971130 19980120 080947 S00000000000001
FA Int Muni Inc -CL C LB Municipal Bond
00525 LB015
1987/11/30 10000.00 10000.00
1987/12/31 10099.85 10145.10
1988/01/31 10462.03 10506.47
1988/02/29 10504.70 10617.52
1988/03/31 10351.12 10494.36
1988/04/30 10403.15 10574.12
1988/05/31 10436.07 10543.56
1988/06/30 10509.44 10697.81
1988/07/31 10564.11 10767.56
1988/08/31 10569.18 10777.03
1988/09/30 10685.14 10972.10
1988/10/31 10812.25 11165.21
1988/11/30 10777.08 11062.93
1988/12/31 10845.08 11176.11
1989/01/31 10954.84 11407.23
1989/02/28 10889.41 11277.07
1989/03/31 10854.87 11250.12
1989/04/30 11008.29 11517.20
1989/05/31 11172.69 11756.41
1989/06/30 11295.30 11916.06
1989/07/31 11408.03 12078.24
1989/08/31 11371.08 11959.99
1989/09/30 11368.82 11924.35
1989/10/31 11459.99 12070.19
1989/11/30 11585.38 12281.42
1989/12/31 11689.81 12381.88
1990/01/31 11651.68 12323.31
1990/02/28 11755.14 12432.99
1990/03/31 11775.18 12436.72
1990/04/30 11654.09 12346.68
1990/05/31 11866.57 12616.21
1990/06/30 11964.82 12727.10
1990/07/31 12109.21 12914.19
1990/08/31 12038.80 12726.68
1990/09/30 12071.05 12733.93
1990/10/31 12206.03 12964.92
1990/11/30 12400.78 13225.65
1990/12/31 12434.25 13283.18
1991/01/31 12573.10 13461.44
1991/02/28 12687.56 13578.56
1991/03/31 12696.09 13583.44
1991/04/30 12811.18 13764.10
1991/05/31 12913.81 13886.47
1991/06/30 12921.65 13872.72
1991/07/31 13051.08 14041.69
1991/08/31 13155.36 14226.62
1991/09/30 13236.00 14411.85
1991/10/31 13378.14 14541.56
1991/11/30 13411.86 14582.13
1991/12/31 13633.48 14895.06
1992/01/31 13728.85 14929.02
1992/02/29 13744.78 14933.80
1992/03/31 13692.20 14939.32
1992/04/30 13787.98 15072.28
1992/05/31 13939.55 15249.68
1992/06/30 14122.76 15505.57
1992/07/31 14427.61 15970.43
1992/08/31 14320.80 15814.72
1992/09/30 14456.56 15918.15
1992/10/31 14353.38 15761.67
1992/11/30 14616.02 16043.96
1992/12/31 14630.62 16207.77
1993/01/31 14797.45 16396.27
1993/02/28 15209.20 16989.32
1993/03/31 15057.95 16809.74
1993/04/30 15163.95 16979.35
1993/05/31 15227.88 17074.78
1993/06/30 15388.84 17359.76
1993/07/31 15406.26 17382.50
1993/08/31 15690.23 17744.40
1993/09/30 15852.66 17946.51
1993/10/31 15867.31 17981.15
1993/11/30 15743.39 17822.73
1993/12/31 16012.63 18198.97
1994/01/31 16161.62 18406.80
1994/02/28 15757.41 17930.07
1994/03/31 15140.64 17199.95
1994/04/30 15274.99 17345.81
1994/05/31 15412.28 17496.20
1994/06/30 15300.68 17389.30
1994/07/31 15498.95 17708.04
1994/08/31 15544.10 17769.31
1994/09/30 15343.45 17508.46
1994/10/31 15114.81 17197.51
1994/11/30 14774.31 16886.58
1994/12/31 15032.26 17258.25
1995/01/31 15399.89 17751.49
1995/02/28 15781.80 18267.70
1995/03/31 15944.43 18477.60
1995/04/30 15929.24 18499.40
1995/05/31 16282.95 19089.72
1995/06/30 16184.74 18923.64
1995/07/31 16295.53 19103.04
1995/08/31 16489.87 19345.26
1995/09/30 16585.52 19467.72
1995/10/31 16752.07 19750.78
1995/11/30 16934.20 20078.44
1995/12/31 17021.82 20271.40
1996/01/31 17143.75 20424.45
1996/02/29 17078.42 20286.58
1996/03/31 16884.73 20027.32
1996/04/30 16838.74 19970.64
1996/05/31 16811.13 19962.65
1996/06/30 16949.15 20180.05
1996/07/31 17072.29 20363.68
1996/08/31 17060.78 20358.80
1996/09/30 17200.51 20643.82
1996/10/31 17358.13 20877.30
1996/11/30 17648.91 21259.36
1996/12/31 17572.75 21170.07
1997/01/31 17613.38 21210.08
1997/02/28 17749.16 21404.79
1997/03/31 17529.19 21119.46
1997/04/30 17652.00 21296.23
1997/05/31 17828.49 21616.53
1997/06/30 18003.73 21846.74
1997/07/31 18423.76 22451.90
1997/08/31 18270.66 22241.52
1997/09/30 18464.83 22505.53
1997/10/31 18539.06 22650.24
1997/11/28 18626.33 22783.42
IMATRL PRASUN SHR__CHT 19971130 19980120 080949 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Intermediate Municipal Income Fund -
Class C on November 30, 1987. As the chart shows, by November 30,
1997, the value of the investment would have been $18,626 - a 86.26%
increase on the initial investment. For comparison, look at how the
Lehman Brothers Municipal Bond Index, which reflects the performance
of the investment-grade municipal bond market, did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 would have grown to $22,783 - a 127.83% increase.
UNDERSTANDING
PERFORMANCE
HOW A FUND DID YESTERDAY IS
NO GUARANTEE OF HOW IT WILL DO
TOMORROW. BOND PRICES, FOR
EXAMPLE, GENERALLY MOVE IN
THE OPPOSITE DIRECTION OF
INTEREST RATES. IN TURN, THE SHARE
PRICE, RETURN AND YIELD OF A
FUND THAT INVESTS IN BONDS WILL
VARY. THAT MEANS IF YOU SELL
YOUR SHARES DURING A MARKET
DOWNTURN, YOU MIGHT LOSE
MONEY. BUT IF YOU CAN RIDE OUT
THE MARKET'S UPS AND DOWNS,
YOU MAY HAVE A GAIN.
(CHECKMARK)
TOTAL RETURN COMPONENTS
YEARS ENDED NOVEMBER 30,

1997 1996 1995 1994 1993

DIVIDEND RETURN 3.79% 3.92% 4.17% 3.81% 5.13%

CAPITAL APPRECIATION RETURN 1.75% 0.29% 10.43% -9.96% 2.59%

TOTAL RETURN 5.54% 4.21% 14.60% -6.15% 7.72%

DIVIDENDS PER SHARE 2.67(CENTS)

ANNUALIZED DIVIDEND RATE 3.42%

30-DAY ANNUALIZED YIELD -

30-DAY ANNUALIZED TAX-EQUIVALENT YIELD -

DIVIDENDS per share show the income paid by the class for a set
period. The annualized dividend rate is based on an average net asset
value of $10.56 over the life of the class. The 30-day annualized
YIELD is a standard formula for all funds based on the yields of the
bonds in the fund, averaged over the past 30 days. This figure shows
you the yield characteristics of the fund's investments at the end of
the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have
to earn on a taxable investment to equal the class' tax-free yield, if
you're in the 36% federal tax bracket, but does not reflect payment of
the federal alternative minimum tax, if applicable. Yield information
will be reported once Class C has a longer, more stable, operating
history.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
With investor sentiment, shifting supply/
demand conditions and Federal
Reserve Board policymaking playing
key roles, municipal bonds performed
more or less in line with their taxable
counterparts for the 12 months that
ended November 30, 1997. The
Lehman Brothers Municipal Bond
Index - a broad measure of the
municipal bond market - returned
7.17%, while the Lehman Brothers
Aggregate Bond Index - a barometer
of the taxable bond market - returned
7.55%. Through much of the first half
of the period, the supply/demand
scenario within the muni market was
favorable: low supply and high
demand that led to rising municipal
bond prices. The second half,
however, saw a large amount of new
issuance come to market, and while
demand remained strong, it took time
for investors to become acclimated to
this new supply. In the interim, muni
bond prices fell. The cold months of
winter contrasted with what many felt
was an overheating economy ripe for
an inflation appearance. In late March,
the Federal Reserve Board raised a
key short-term interest rate by 0.25%.
While this move was anticipated by
investors, the market nonetheless
reacted negatively. From April through
mid-September, market conditions
were more friendly. Favorable
economic data soothed inflationary
concerns, while the Fed's reluctance
to raise rates further was another
positive influence. High supply and
low demand resulted in a sub-par
performance for muni bonds in
September and October, but Asian
volatility toward the end of the period
changed momentum. Currency
devaluations meant prices of Asian
goods would become cheaper, further
decreasing the likelihood of inflation.
An interview with David Murphy, Portfolio Manager of Fidelity Advisor
Intermediate Municipal Income Fund
Q. HOW DID THE FUND PERFORM, DAVID?
A. For the 12-month period that ended November 30, 1997, the fund's
Class A, Class T, Class B and Class C shares had total returns of
6.42%, 6.21%, 5.54%, and 5.54%, respectively. To get a sense of how
the fund did relative to its competitors, the intermediate municipal
debt funds average returned 5.50% for the same 12-month period,
according to Lipper Analytical Services. Additionally, the Lehman
Brothers 1-17 Year Municipal Bond Index returned 6.45% for the same
one-year period.
Q. WHAT WAS YOUR STRATEGY?
A. In terms of the way the fund's investments were allocated among
bonds with various maturities, I focused on bonds with maturities
between five and 12 years. I did that because the municipal yield
curve - which is a graphical representation of the yield of
intermediate-term bonds by ascending maturity dates - was flatter
beyond 12 years. Up to about a 12-year maturity, an investor was paid
an appropriate amount of added income for each additional year of
maturity. It is this additional income that compensates the investor
for the added risk taken on by investing in the longer-maturity part
of the intermediate market. But for bonds with maturities of 12 years
or longer, the extra income for each successive year was, in my
opinion, less attractive given the level of risk inherent in
longer-term bonds. Another key strategy was that I kept the fund's
duration, which measures its sensitivity to changing interest rates,
neutral relative to the Lehman Brothers 1-17 Year Municipal Bond
Index. By doing so, the fund avoids getting whipsawed by becoming
bullish or bearish about the direction of interest rates at the wrong
time.
Q. WHAT WERE SOME OF THE FUND'S BEST PERFORMERS DURING THE PERIOD?
A. The fund's holdings in bonds issued in the state of New York were
winners. The state's finances improved, driven in part by the strength
of the securities industry, an important contributor to New York's tax
revenues. In recognition of this improvement, Standard & Poor's - one
of the municipal bond credit rating agencies - upgraded the credit
rating of some of the state's agencies, which was a positive
development for the prices of the fund's agency holdings. Likewise,
general obligation bonds issued by New York City also performed well
as the city's economy continued to expand. Additionally, bonds issued
by the Massachusetts Industrial Finance Agency on
behalf of Massachusetts Biomedical Research Corp. rose in value
because more investors became better-informed about its positive
financial performance.
Q. WERE THERE ANY DISAPPOINTMENTS DURING THE PERIOD?
A. The return from one of the fund's student loan bonds was
disappointing when prepayments - which rise as borrowers pay back
their loans early - came in a little bit higher than expected.
However, I continued to maintain a fairly heavy weighting in these
bonds because they generally offer attractive yields. With input from
Fidelity's research team, I try to pick student loan bonds that I
think will be prepaid more slowly.
Q. DURING THE PAST YEAR, THERE WAS AN INCREASE IN THE FUND'S ELECTRIC
UTILITY REVENUE POSITION. GIVEN THAT THE ELECTRIC INDUSTRY IS UNDER
PRESSURE FROM THE THREAT OF INCREASED COMPETITION, WHAT FACTORS DO YOU
LOOK FOR WHEN SELECTING THESE BONDS?
A. The electric utility industry is in the early stages of a
transformation from an environment where electric providers enjoy
monopolistic strongholds on a given service area to one where
competition will reign. With that in mind, I have focused on two types
of electric utilities: those that are well-prepared to deal with
increased competition; or those that I believe can meet competitive
challenges down the road but have been severely and unduly penalized
by the market today because of uncertainty surrounding future
deregulation.
Q. WHAT'S AHEAD FOR THE MUNICIPAL MARKET?
A. During the past several years, the amount of outstanding municipal
bonds has shrunk considerably. In the first half of 1997, the low
supply helped the municipal market outperform the taxable bond market.
I expect supply will increase next year. The question is, will there
be enough demand to digest that supply? In my view, that will depend
on how investors perceive the attractiveness of municipals relative to
other fixed-income alternatives and especially to equity investments.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
DAVID MURPHY ON MUNICIPAL
BOND SUPPLY:
"THE SUPPLY OF MUNICIPAL BONDS IS AN
IMPORTANT FACTOR IN THEIR
PERFORMANCE. DURING THE PAST SIX
MONTHS, INTEREST RATES HAVE DECLINED
FAIRLY SIGNIFICANTLY. FALLING INTEREST
RATES PROMPTED MUNICIPAL BOND
ISSUERS TO REFUND, OR REFINANCE,
THEIR OLDER DEBT AT CURRENT LOW
INTEREST RATES, MUCH IN THE SAME
FASHION THAT HOMEOWNERS REFINANCE
THEIR MORTGAGES WHEN THEY SEE AN
OPPORTUNITY TO LOWER THEIR INTEREST
COSTS. AS A RESULT OF A RECENT INCREASE
IN THE SUPPLY OF MUNICIPAL BONDS,
THEIR PRICES TENDED TO LAG U.S.
TREASURIES DURING THE FINAL MONTHS
OF THE PERIOD. IF INTEREST RATES STAY AT
CURRENT LOW LEVELS, OR FALL FURTHER, I
THINK THAT THE SUPPLY OF ISSUED
MUNICIPAL BONDS WILL CONTINUE TO
EXPAND, PERHAPS DRAMATICALLY. THIS
WOULD, IN MY OPINION, LEAD TO FURTHER
UNDERPERFORMANCE RELATIVE TO U.S.
TREASURIES. BUT IF THERE IS A
SIGNIFICANT DECLINE IN THE U.S. STOCK
MARKET, MORE INVESTMENT DOLLARS
COULD BE RE-ALLOCATED TO MUNICIPAL
BONDS."

NOTE TO SHAREHOLDERS: EFFECTIVE
JANUARY 31, 1998, NORM LIND WILL
BECOME PORTFOLIO MANAGER OF THE
FUND. HE JOINED FIDELITY IN 1986.
FUND FACTS
GOAL: TO SEEK THE HIGHEST LEVEL
OF INCOME EXEMPT FROM FEDERAL
INCOME TAXES THAT CAN BE
OBTAINED CONSISTENT WITH THE
PRESERVATION OF CAPITAL
START DATE: SEPTEMBER 19, 1985
SIZE: AS OF NOVEMBER 30,
1997, MORE THAN $63 MILLION
MANAGER: DAVID MURPHY,
SINCE 1995; JOINED FIDELITY
IN 1989
(CHECKMARK)
INVESTMENT CHANGES

TOP FIVE STATES AS OF NOVEMBER 30, 1997
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE STATES
6 MONTHS AGO

CALIFORNIA 15.9 18.5

NEW YORK 11.1 12.4

MASSACHUSETTS 7.6 7.3

TEXAS 6.7 6.1

NEW MEXICO 5.7 5.5

TOP FIVE SECTORS AS OF NOVEMBER 30, 1997
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO

GENERAL OBLIGATION 28.9 29.8

EDUCATION 20.3 19.9

ELECTRIC REVENUE 16.7 13.7

HEALTH CARE 6.9 7.8

TRANSPORTATION 6.2 5.1

AVERAGE YEARS TO MATURITY AS OF NOVEMBER 30, 1997
6 MONTHS AGO

YEARS 7.6 7.8

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY
DOLLAR AMOUNT.
DURATION AS OF NOVEMBER 30, 1997
6 MONTHS AGO

YEARS 5.6 5.7

DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF NOVEMBER 30, 1997 AS OF MAY 31, 1997
AAA 44.3%
AA, A 35.5%
BAA 16.2%
SHORT-TERM
INVESTMENTS 4.0%
AAA 38.8%
AA, A 39.1%
BAA 17.2%
SHORT-TERM
INVESTMENTS 4.9%
ROW: 1, COL: 1, VALUE: 4.0
ROW: 1, COL: 2, VALUE: 16.2
ROW: 1, COL: 3, VALUE: 35.5
ROW: 1, COL: 4, VALUE: 44.3
ROW: 1, COL: 1, VALUE: 4.9
ROW: 1, COL: 2, VALUE: 17.2
ROW: 1, COL: 3, VALUE: 39.1
ROW: 1, COL: 4, VALUE: 38.8
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
INVESTMENTS NOVEMBER 30, 1997

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

MUNICIPAL BONDS - 96.0%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ALASKA - 3.8%
North Slope Borough Gen. Oblig. (Cap. Appreciation)
Series B, 0% 1/1/03 (MBIA Insured) $ 3,000,000 $ 2,381,250 662523RR
ARKANSAS - 1.3%
Arkansas College Savings Gen. Oblig. (Cap. Appreciation)
Series A, 0% 6/1/02 1,000,000 820,000 041039QG
CALIFORNIA - 15.9%
California Edl. Facs. Auth. Rev. Rfdg. (Chapman Univ.)
5.375% 10/1/16 (Connie Lee Insured) 225,000 225,563 130174J2
California Gen. Oblig.
6.25% 10/1/19 400,000 435,500 130627BB
California Hsg. Fin. Agcy. Rev. (Home Mtg.) Series R,
5.35% 8/1/07 (MBIA Insured) (e) 1,000,000 1,045,000 13033EYM
California Poll. Cont. Fing. Auth. Resource Recovery
Rev. (Waste Management, Inc.)
Series A, 7.15% 2/1/11 (e) 500,000 544,375 130535BD
California Pub. Wks. Board Lease Rev. Rfdg.:
(Dept. of Corrections State Prison, Monterey County
Soledad II) Series D, 5.375% 11/1/14 500,000 506,250 13068G4K
(Various California State Univ. Projs.)
Series A, 5.50% 6/1/10 1,000,000 1,056,250 13068GRE
California Rural Home Mtg. Fin. Auth. Lease Rev.
(Rural Lease Purchase) Series A,
4.45% 8/1/01 (MBIA Insured) 1,000,000 1,011,250 130574AA
Long Beach Hbr. Rev. Rfdg. Series A, 5.50% 5/15/07
(FGIC Insured) (e)(g) 250,000 262,188 542424FJ
Los Angeles Unified School Dist. Series A, 6% 7/1/11
(FGIC Insured) 250,000 277,813 544644BA
Los Angeles County Ctfs. of Prtn. (Disney Parking Proj.)
(Cap. Appreciation) 0% 9/1/04 970,000 695,975 5446633R
Sacramento Muni. Util. Dist. Elec. Rev. 1.76% 11/15/08
(FGIC Insured) (a) 1,000,000 1,023,750 7860042C
Sacramento Pwr. Auth. Cogeneration Proj. Rev.:
6% 7/1/02 1,000,000 1,057,500 78605NAE
6.50% 7/1/08 300,000 331,125 78605NAL
San Bernadino County Ctfs. of Prtn. Rfdg.
(Med. Ctr. Fing. Proj.) 5.25% 8/1/04 500,000 512,500 796815NW
West Covina Ctfs. of Prtn. (Queen of The Valley Hosp.)
6.50% 8/15/09 1,000,000 1,086,250 952358BQ
10,071,289
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
COLORADO - 1.7%
Arapaho County Cap. Impt. Tr. Fed. Hwy. Rev.
(Cap. Appreciation) Series C, 0% 8/31/26
(Pre-Refunded to 8/31/05 @ 20.863) (f) $ 3,620,000 $ 524,900
03866ECC
Colorado Health Facs. Auth. Rev. Rfdg.
(Rocky Mountain Adventist) 6.25% 2/1/04 500,000 530,625 1964732L
1,055,525
DISTRICT OF COLUMBIA - 2.5%
District of Columbia Gen. Oblig. Rfdg. Series B-1,
5.40% 6/1/06 (AMBAC Insured) 1,000,000 1,043,750 254760ZF
District of Columbia Redev. Land Agcy. Spl. Tax Rev.
(Washington D.C. Sports Arena)
5.40% 11/1/00 500,000 509,375 254838AE
1,553,125
FLORIDA - 2.6%
Broward County Resource Recovery Rev.
(SES Broward Co. LP South Proj.) 7.95% 12/1/08 500,000 543,750
115064AE
Dade County Wtr. & Swr. Sys. Rev. 6.25%
10/1/10 (FGIC Insured) 500,000 573,750 233620DJ
Jacksonville Port Auth. Rev. Rfdg. (Port Facs.)
5.75% 11/1/09 (MBIA Insured) (e) 500,000 538,750 469466DS
1,656,250
GEORGIA - 2.7%
Georgia Gen. Oblig. Rfdg. Series A, 6.25% 3/1/06 1,000,000
1,118,750 373382QE
Monroe County Dev. Auth. Poll. Cont. Rev. Rfdg.
(Oglethorpe Pwr. Scherer Corp.)
Series A, 6.60% 1/1/07 500,000 566,875 610530BX
1,685,625
HAWAII - 0.4%
Honolulu Hawaii City and County Rfdg.
Series C, 5.50% 11/1/04 (FGIC Insured) 250,000 264,688 438669YX
ILLINOIS - 4.0%
Chicago Midway Arpt. Rev. Series B,
6% 1/1/09 (MBIA Insured) (e) 300,000 321,750 167562BU
Illinois Health Facs. Auth. Rev. Rfdg.
(Felician Health Care, Inc.) Series A,
6.85% 1/1/00 (AMBAC Insured) 1,000,000 1,050,000 45201HZC
Metropolitan Pier & Exposition Auth. Dedicated Tax Rev.
(McCormick Place Expansion Proj.) (Cap. Appreciation):
Series A, 0% 6/15/09 (FGIC Insured) 500,000 281,875 592247CQ
0% 6/15/00 (AMBAC Insured) 1,000,000 895,000 592247BU
2,548,625
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
IOWA - 1.7%
Iowa Student Loan Liquidity Corp. Student Loan Rev.
Series A, 6.35% 3/1/01 $ 1,000,000 $ 1,052,500 462590BT
LOUISIANA - 1.4%
Louisiana Pub. Facs. Auth. Rev. Rfdg. (Student Loan)
Sr. Series A-1, 6.20% 3/1/01 830,000 870,463 54640AJY
MASSACHUSETTS - 7.6%
Boston Rev. (Boston City Hosp.) Series A,
7.625% 2/15/21 (FHA Guaranteed)
(Pre-Refunded to 8/15/00 @ 102) (f) 250,000 276,563 101026AP
Massachusetts Gen. Oblig. Rfdg.
Series A, 5.50% 2/1/11 250,000 255,932 5758234S
Massachusetts Health & Edl. Facs. Auth. Rev. Rfdg.
(Fairview Extended Care) Series B, 4.55% 7/15/02
(MBIA Insured) LOC Bank Boston, N.A. 400,000 400,000 57585JRR
Massachusetts Ind. Fin. Agcy. Rev. (Cap. Appreciation)
(Massachusetts Biomedical Research)
Series A-1, 0% 8/1/02 1,600,000 1,292,000 575914DY
Massachusetts Tpk. Auth. Western Tpk. Rev. Series A,
5.55% 1/1/17 (MBIA Insured) 600,000 610,962 57604EAA
New England Ed. Loan Marketing Corp. Student Loan
Rev. Rfdg. Series B, 5.40% 6/1/00 1,950,000 1,998,750 643898BG
4,834,207
MINNESOTA - 2.1%
Minnesota Gen. Oblig. 6% 5/1/06 1,000,000 1,103,750 604128XY
Minnesota Higher Ed. Facs. Auth. Rev.
(Macalester College) Series 4-C,
5.50% 3/1/12 200,000 206,750 604151UN
1,310,500
NEW JERSEY - 1.8%
New Jersey Econ. Dev. Auth. Market Transition Facs.
Rev. (Sr. Lien) Series A, 7% 7/1/04 (MBIA Insured) 1,000,000
1,142,500 645910AH
NEW MEXICO - 5.7%
Albuquerque Arpt. Rev. Rfdg. 6.75% 7/1/09
(AMBAC Insured) (e) 450,000 519,750 013538EU
New Mexico Edl. Assistance Foundation Student Loan
Rev. Sr. Series IV-A2, 6.65% 3/1/07 2,300,000 2,501,250 647111DH
Rio Rancho Wtr. & Wastewtr. Sys. Rev.
Series A, 8% 5/15/04 (FSA Insured) 500,000 596,875 767175AH
3,617,875
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 11.1%
Metropolitan Trans. Auth. Svc. Contract Rfdg. (Transit Facs.)
Series 5, 6.90% 7/1/05 $ 1,000,000 $ 1,092,500 592597WF
New York City Gen. Oblig. Series G, 5.40% 2/1/01 2,000,000
2,060,000 649664HN
New York City Muni. Assistance Corp. Rfdg.
Series E, 6% 7/1/04 500,000 543,125 626190G5
New York State Dorm. Auth. Rev.
(City Univ. Sys. Consolidated):
Series A, 5.75% 7/1/13 500,000 526,250 649834HV
Series C, 7.50% 7/1/10 500,000 606,250 649832DG
(State Univ. Edl. Facs.)
Series A, 6.50% 5/15/04 500,000 553,750 649835LU
New York State Local Gov't. Assistance Corp.
(Cap. Appreciation) Series A, 0% 4/1/08 1,000,000 601,250
649876AW
New York State Thruway Auth. Hwy. & Bridge Trust Fund
Series A, 5.80% 4/1/09 500,000 530,625 650013AQ
New York State Urban Dev. Corp. Rev.
Series A, 5.50% 4/1/10 (MBIA Insured) 500,000 520,625 650034AX
7,034,375
NORTH CAROLINA - 3.3%
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.:
Rfdg.:
Series B, 6% 1/1/06 1,000,000 1,067,500 658196NS
Series C, 5.50% 1/1/07 200,000 206,000 658196TB
Series A, 5.625% 1/1/03 500,000 518,750 658196NM
North Carolina Muni. Pwr. Agcy. Rfdg..
(Catawba Elec.) 5.90% 1/1/03 250,000 263,125 658203QC
2,055,375
OHIO - 1.2%
Ohio Bldg. Auth. State Facs. (Adult Correctional)
Series A, 5.95% 10/1/14 (MBIA Insured) 500,000 522,500 67755AJY
Ohio Tpk. Commission Tpk. Rev. Series A, 5.60%
2/15/12 (MBIA Insured) 250,000 259,063 67760HBP
781,563
PENNSYLVANIA - 3.9%
Pennsylvania Higher Edl. Facs. Auth. College & Univ.
Rev. Rfdg. (RIDC Reg'l. Growth - Carnegie Mellon
Univ. Proj.) 6% 11/1/04 1,270,000 1,395,413 709171H4
Pennsylvania Hsg. Fin. Agcy. Rfdg. (Residential Dev.)
Series A, 7% 7/1/01 1,000,000 1,077,500 708791ZL
2,472,913
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
RHODE ISLAND - 1.7%
Rhode Island Student Loan Auth. Student Loan Rev. Rfdg.
Series A, 6.55% 12/1/00 $ 1,000,000 $ 1,066,250 762315AQ
SOUTH CAROLINA - 3.7%
South Carolina Ed. Assistance Auth. Rev. Rfdg.
(Guaranteed Student Loan):
Series A-2, 5.40% 9/1/02 1,250,000 1,306,250 837114FC
Series B, 5.70% 9/1/05 (e) 1,000,000 1,050,000 837114FR
2,356,250
TENNESSEE - 0.5%
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Rfdg.
Series A, 6% 2/15/07 (MBIA Insured) (e) 265,000 288,519 586111EH
TEXAS - 6.7%
Hurst Euless Bedford Independent School Dist. Rfdg.
(Cap. Appreciation) 0% 8/15/11
(PSF Guaranteed) 1,000,000 496,250 4478163B
Irving Texas Independent School Dist. (Cap. Appreciation)
0% 2/15/00 (PSF Guaranteed) (g) 250,000 227,813 46799QAC
North East Independent School Dist. Rfdg.
(Cap. Appreciation) Series D, 0% 2/1/00 2,065,000 1,886,894
659154YL
Port Arthur Hsg. Fin. Corp. Single Family Mtg.
Rev. Rfdg. 8.70% 3/1/12 465,000 507,431 733500BV
Texas Pub. Fin. Auth. Bldg. Rev. Rfdg. (Texas Technical
College) 6.25% 8/1/09 (MBIA Insured) 1,000,000 1,132,500 88275MDY
4,250,888
UTAH - 3.8%
Intermountain Pwr. Agcy. Pwr. Supply Rev.:
(Cap. Appreciation)
Series A, 0% 7/1/06 (MBIA Insured) 2,860,000 1,901,900 4588403Z
Rfdg.:
Series A, 6.50% 7/1/08 (AMBAC Insured) 250,000 287,188 45884AFR
Series D, 5% 7/1/21 (MBIA Insured) 200,000 193,000 45884AFE
2,382,088
WASHINGTON - 4.9%
Washington Pub. Pwr. Supply Sys.Rev.:
(Nuclear Proj. #2)
Rfdg. Series C, 7.50% 7/1/03 525,000 582,094 939828MP
5.40% 7/1/12 (b) 2,000,000 2,027,500 939828TX
(Nuclear Proj. #3)
Rfdg. Series C, 5.10% 7/1/07 500,000 514,375 939830PP
3,123,969
TOTAL MUNICIPAL BONDS
(Cost $58,387,323) 60,676,612
CASH EQUIVALENTS - 4.0%
SHARES VALUE
(NOTE 1)
Municipal Central Cash Fund (c)(d)
(Cost $2,516,501) 2,516,501 $ 2,516,501 31635A20
TOTAL INVESTMENTS IN SECURITIES - 100%
(Cost $60,903,824) $ 63,193,113
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
10 Municipal Bond Futures Contracts Dec. 97 $ 1,222,812 $ 16,502
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 1.9%
LEGEND
1. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date. The rate shown is the rate at
period end.
2. A portion of the security was pledged to cover margin requirements
for futures contracts. At the period end, the value of securities
pledged amounted to $50,688.
3. Information in this report regarding holdings by state and security
types do not reflect the holdings of the Municipal Central Cash Fund.
A listing of the Municipal Central Cash Fund's holdings as of its most
recent fiscal period end is available upon request.
4. At the period end, the seven-day yield of the Municipal Central
Cash Fund was 3.86% The yield refers to the income earned by investing
in the fund over the seven-day period, expressed as an annual
percentage.
5. Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
6. Security collateralized by an amount sufficient to pay interest and
principal.
7. Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investment in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 76.5% AAA, AA, A 72.3%
Baa 14.6% BBB 14.3%
Ba 0.0% BB 0.0%
B 0.0% B 0.1%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by Moody's or S&P amounted to 0.0%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investment in securities, is as follows:
General Obligation 28.9%
Education 20.3
Electric Revenue 16.7
Health Care 6.9
Transportation 6.2
Housing 5.8
Others (individually less than 5%) 15.2
TOTAL 100.0%
INCOME TAX INFORMATION
At November 30, 1997 the aggregate cost of investment securities for
income tax purposes was $60,903,824. Net unrealized appreciation
aggregated $2,289,289, of which $2,290,144 related to appreciated
investment securities and $855 related to depreciated investment
securities.
The fund hereby designates approximately $68,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
At November 30, 1997, the fund was required to defer approximately
$113,000 of losses on futures contracts.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
NOVEMBER 30, 1997

ASSETS

INVESTMENT IN SECURITIES, AT VALUE (COST $60,903,824) - $ 63,193,113
SEE ACCOMPANYING SCHEDULE

INTEREST RECEIVABLE 864,602

RECEIVABLE FOR DAILY VARIATION ON FUTURES CONTRACTS 313

PREPAID EXPENSES 13,782

TOTAL ASSETS 64,071,810

LIABILITIES

PAYABLE TO CUSTODIAN BANK $ 47,694

PAYABLE FOR INVESTMENTS PURCHASED 491,209
DELAYED DELIVERY

PAYABLE FOR FUND SHARES REDEEMED 61,659

DISTRIBUTIONS PAYABLE 73,338

DISTRIBUTION FEES PAYABLE 14,440

ACCRUED MANAGEMENT FEE 18,402

OTHER PAYABLES AND ACCRUED EXPENSES 66,675

TOTAL LIABILITIES 773,417

NET ASSETS $ 63,298,393

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 60,935,835

ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON 56,767
INVESTMENTS

NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 2,305,791

NET ASSETS $ 63,298,393

</TABLE>

STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
NOVEMBER 30, 1997

CALCULATION OF MAXIMUM OFFERING PRICE $10.60
CLASS A:
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($441,602 (DIVIDED BY) 41,679 SHARES)

MAXIMUM OFFERING PRICE PER SHARE (100/96.25 OF $10.60) $11.01

CLASS T: $10.59
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($48,830,052 (DIVIDED BY) 4,609,444 SHARES)

MAXIMUM OFFERING PRICE PER SHARE (100/97.25 OF $10.59) $10.89

CLASS B: $10.59
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($7,916,605 (DIVIDED BY) 747,589 SHARES) A

CLASS C: $10.59
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($12,572 (DIVIDED BY) 1,187 SHARES) A

INSTITUTIONAL CLASS: $10.59
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE ($6,097,562 (DIVIDED BY) 575,743 SHARES)

A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED NOVEMBER 30, 1997

INTEREST INCOME $ 3,478,411

EXPENSES

MANAGEMENT FEE $ 255,140

TRANSFER AGENT FEES 127,011

DISTRIBUTION FEES 194,896

ACCOUNTING FEES AND EXPENSES 61,883

NON-INTERESTED TRUSTEES' COMPENSATION 180

CUSTODIAN FEES AND EXPENSES 6,548

REGISTRATION FEES 74,299

AUDIT 43,635

LEGAL 886

MISCELLANEOUS 1,700

TOTAL EXPENSES BEFORE REDUCTIONS 766,178

EXPENSE REDUCTIONS (82,120) 684,058

NET INTEREST INCOME 2,794,353

REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:

INVESTMENT SECURITIES 858,153

FUTURES CONTRACTS 16,876 875,029

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:

INVESTMENT SECURITIES 175,681

FUTURES CONTRACTS 16,502 192,183

NET GAIN (LOSS) 1,067,212

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 3,861,565
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30,
1997 1996

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 2,794,353 $ 3,449,493
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) 875,029 684,780

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 192,183 (712,133)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 3,861,565 3,422,140
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS (2,794,353) (3,449,493)
FROM NET INTEREST INCOME

FROM NET REALIZED GAIN (6,721) -

TOTAL DISTRIBUTIONS (2,801,074) (3,449,493)

SHARE TRANSACTIONS - NET INCREASE (DECREASE) (8,495,226) (9,402,984)

TOTAL INCREASE (DECREASE) IN NET ASSETS (7,434,735) (9,430,337)

NET ASSETS

BEGINNING OF PERIOD 70,733,128 80,163,465

END OF PERIOD $ 63,298,393 $ 70,733,128

</TABLE>

FINANCIAL HIGHLIGHTS CLASS - A
YEARS ENDED NOVEMBER 30,

1997 1996 E

SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 10.410 $ 10.160

INCOME FROM INVESTMENT OPERATIONS

NET INTEREST INCOME .459 .113

NET REALIZED AND UNREALIZED GAIN (LOSS) .191 .250 D

TOTAL FROM INVESTMENT OPERATIONS .650 .363

LESS DISTRIBUTIONS

FROM NET INTEREST INCOME (.459) (.113)

FROM NET REALIZED GAIN (.001) -

TOTAL DISTRIBUTIONS (.460) (.113)

NET ASSET VALUE, END OF PERIOD $ 10.600 $ 10.410

TOTAL RETURN B, C 6.42% 3.59%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 442 $ 103

RATIO OF EXPENSES TO AVERAGE NET ASSETS .90% F .90% A,
F

RATIO OF NET INTEREST INCOME TO AVERAGE NET ASSETS 4.37% 4.60% A

PORTFOLIO TURNOVER RATE 18% 35%

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH
THE AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD DUE TO THE TIMING
OF SALES AND REPURCHASES OF CLASS SHARES IN RELATION TO FLUCTUATING
MARKET VALUES OF THE INVESTMENTS OF THE FUND.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
SHARES) TO NOVEMBER 30, 1996.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - CLASS T

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED NOVEMBER 30,

1997 1996 1995 1994 F 1993

SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING $ 10.410 $ 10.380 $ 9.400 $ 10.460 $ 11.080
OF PERIOD

INCOME FROM INVESTMENT OPERATIONS

NET INTEREST INCOME .449 .461 .451 .455 .508

NET REALIZED .181 .030 D .980 (1.040) .260
AND UNREALIZED GAIN (LOSS)

TOTAL FROM INVESTMENTOPERATIONS .630 .491 1.431 (.585) .768

LESS DISTRIBUTIONS

FROM NET INTEREST INCOME (.449) (.461) (.451) (.455) (.508)

FROM NET REALIZED GAIN (.001) - - - (.880)

IN EXCESS OF NET REALIZED GAIN - - - (.020) -

TOTAL DISTRIBUTIONS (.450) (.461) (.451) (.475) (1.388)

NET ASSET VALUE, END OF PERIOD $ 10.590 $ 10.410 $ 10.380 $ 9.400 $ 10.460

TOTAL RETURN B, C 6.21% 4.89% 15.49% (5.78)% 7.72%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD $ 48,830 $ 56,729 $ 62,852 $ 57,382 $ 39,800
(000 OMITTED)

RATIO OF EXPENSES TO AVERAGE 1.00% 1.00% .94% .90% .90%
NET ASSETS E E E E E

RATIO OF NET INTEREST INCOME TO 4.32% 4.42% 4.56% 4.49% 4.76%
AVERAGE NET ASSETS

PORTFOLIO TURNOVER RATE 18% 35% 53% 53% 46%

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH
THE AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD DUE TO THE TIMING
OF SALES AND REPURCHASES OF CLASS SHARES IN RELATION TO FLUCTUATING
MARKET VALUES OF THE INVESTMENTS OF THE FUND.
E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F EFFECTIVE DECEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL GAINS, AND RETURNS OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INTEREST INCOME PER SHARE MAY
REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
FINANCIAL HIGHLIGHTS - CLASS B
YEARS ENDED NOVEMBER 30,

1997 1996 1995 1994 D

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 10.410 $ 10.380 $ 9.400 $ 9.890

INCOME FROM INVESTMENT OPERATIONS

NET INTEREST INCOME .382 .394 .373 .155

NET REALIZED AND UNREALIZED GAIN (LOSS) .181 .030 F .980 (.490)

TOTAL FROM INVESTMENT OPERATIONS .563 .424 1.353 (.335)

LESS DISTRIBUTIONS

FROM NET INTEREST INCOME (.382) (.394) (.373) (.155)

FROM NET REALIZED GAIN (.001) - - -

TOTAL DISTRIBUTIONS (.383) (.394) (.373) (.155)

NET ASSET VALUE, END OF PERIOD $ 10.590 $ 10.410 $ 10.380 $ 9.400

TOTAL RETURN B, C 5.54% 4.21% 14.60% (3.44)%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 7,917 $ 7,445 $ 6,226 $ 1,682

RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.65% E 1.66% E 1.68% E 1.65% A,
E

RATIO OF NET INTEREST INCOME TO AVERAGE 3.67% 3.76% 3.71% 3.74% A
NET ASSETS

PORTFOLIO TURNOVER RATE 18% 35% 53% 53%

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALE OF CLASS B
SHARES) TO NOVEMBER 30, 1994.
E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH
THE AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD DUE TO THE TIMING
OF SALES AND REPURCHASES OF CLASS SHARES IN RELATION TO FLUCTUATING
MARKET VALUES OF THE INVESTMENTS OF THE FUND.
FINANCIAL HIGHLIGHTS - CLASS C
YEAR ENDED
NOVEMBER 30,

1997 D

SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 10.550

INCOME FROM INVESTMENT OPERATIONS

NET INTEREST INCOME .027

NET REALIZED AND UNREALIZED GAIN (LOSS) .040

TOTAL FROM INVESTMENT OPERATIONS .067

LESS DISTRIBUTIONS

FROM NET INTEREST INCOME (.027)

NET ASSET VALUE, END OF PERIOD $ 10.590

TOTAL RETURN B, C 0.63%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 13

RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.75% A, E

RATIO OF NET INTEREST INCOME TO AVERAGE NET ASSETS 3.33% A

PORTFOLIO TURNOVER RATE 18%

1997 1996 1995 1994 E 1993

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF $ 10.410 $ 10.360 $ 9.410 $ 10.460 $ 11.080
PERIOD

INCOME FROM INVESTMENT OPERATIONS

NET INTEREST INCOME .475 .487 .477 .481 .536

NET REALIZED AND .181 .050 B .950 (1.030) .260
UNREALIZED GAIN (LOSS)

TOTAL FROM INVESTMENT OPERATIONS .656 .537 1.427 (.549) .796

LESS DISTRIBUTIONS

FROM NET INTEREST INCOME (.475) (.487) (.477) (.481) (.536)

FROM NET REALIZED GAIN (.001) - - - (.880)

IN EXCESS OF NET REALIZED GAIN - - - (.020) -

TOTAL DISTRIBUTIONS (.476) (.487) (.477) (.501) (1.416)

NET ASSET VALUE, END OF PERIOD $ 10.590 $ 10.410 $ 10.360 $ 9.410 $ 10.460

TOTAL RETURN A 6.48% 5.36% 15.44% (5.43)% 8.01%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD $ 6,098 $ 6,455 $ 11,085 $ 11,702 $ 15,076
(000 OMITTED)

RATIO OF EXPENSES TO AVERAGE .75% C .75% .70% .65% .65%
NET ASSETS C C C C

RATIO OF EXPENSES TO AVERAGE NET .75% .74% .70% .65% .65%
ASSETS AFTER EXPENSE REDUCTIONS D

RATIO OF NET INTEREST INCOME TO 4.57% 4.68% 4.96% 4.75% 5.01%
AVERAGE NET ASSETS

PORTFOLIO TURNOVER RATE 18% 35% 53% 53% 46%

</TABLE>

A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
B THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH
THE AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD DUE TO THE TIMING
OF SALES AND REPURCHASES OF CLASS SHARES IN RELATION TO FLUCTUATING
MARKET VALUES OF THE INVESTMENTS OF THE FUND.
C FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
E EFFECTIVE DECEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL GAINS, AND RETURNS OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INTEREST INCOME PER SHARE MAY
REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended November 30, 1997

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Intermediate Municipal Income Fund(the fund) is a
fund of Fidelity Advisor Series VI(the trust) and is authorized to
issue an unlimited number of shares. The trust is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts
business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional
Class shares, each of which has equal rights as to assets and voting
privileges. Each class has exclusive voting rights with respect to its
distribution plan. The fund commenced sale of Class C shares on
November 3, 1997. Interest income, realized and unrealized capital
gains and losses, the common expenses of the fund, and certain
fund-level expense reductions, if any, are allocated on a pro rata
basis to each class based on the relative net assets of each class to
the total net assets of the fund. Each class of shares differs in its
respective distribution, transfer agent, registration, and certain
other class-specific fees, expenses, and expense reductions.
The financial statements have been prepared in conformity with
generally accepted accounting principles which permit management to
make certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting
policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized
matrix system and/ or appraisals by a pricing service, both of which
consider market transactions and dealer-supplied valuations.
Securities for which quotations are not readily available are valued
at their fair value as determined in good faith under consistently
applied procedures under the general supervision of the Board of
Trustees. Short-term securities with remaining maturities of sixty
days or less for which quotations are not readily available are valued
at amortized cost or original cost plus accrued interest, both of
which approximate current value.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of original issue discount, is accrued as
earned.
EXPENSES. Most expenses of the, trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
between the funds in the trust.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears
all organizational expenses except for registering and qualifying
Class C and shares of Class C for distribution under federal and state
securities law. These expenses are borne by Class C and amortized over
one year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and
paid monthly from net interest income. Distributions from realized
gains, if any, are recorded on the ex-dividend date. Income dividends
and capital gain distributions are declared separately for each class.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, capital loss carryforwards and
losses deferred due to futures. The fund also utilized earnings and
profits distributed to shareholders on redemption of shares as a part
of the dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and
may affect the per-share allocation between net interest income and
realized and unrealized gain (loss). Accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in
the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the fund may invest in the
Municipal Central Cash Fund (the Cash Fund) managed by FMR Texas Inc.,
an affiliate of (FMR). The Cash Fund is an open-end money market fund
available only to investment companies and other accounts managed by
FMR and its affiliates. The Cash Fund seeks preservation of capital,
liquidity, and current income by investing in high-quality, short-term
municipal securities of various states and municipalities. Income
distributions from the Cash Fund are declared daily and paid monthly
from net interest income. Income distributions received by the fund
are recorded as interest income in the accompanying financial
statements.
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place a month or more
after the date of the transaction. The price of the underlying
securities is fixed at the time the transaction is negotiated. The
market values of the securities purchased on a when-issued or forward
commitment basis are identified as such in the fund's schedule of
investments. The fund may receive compensation for interest forgone in
the purchase of a when-issued security. With respect to purchase
commitments, the fund identifies securities as segregated in its
custodial records with a value at least equal to the amount of the
commitment. The payables and receivables
2. OPERATING POLICIES - CONTINUED
WHEN-ISSUED SECURITIES - CONTINUED
associated with the purchases and sales of when-issued securities
having the same settlement date and broker are offset. When-issued
securities that have been purchased from and sold to different brokers
are reflected as both payables and receivables in the statement of
assets and liabilities under the caption "Delayed delivery." Losses
may arise due to changes in the market value of the underlying
securities, if the counterparty does not perform under the contract,
or if the issuer does not issue the securities due to political,
economic, or other factors.
FUTURES CONTRACTS. The fund may use futures contracts to manage its
exposure to the bond market and to fluctuations in interest rates .
Buying futures tends to increase the fund's exposure to the underlying
instrument, while selling futures tends to decrease the fund's
exposure to the underlying instrument or hedge other fund investments.
Futures contracts involve, to varying degrees, risk of loss in excess
of the futures variation margin reflected in the Statement of Assets
and Liabilities. The underlying face amount at value of any open
futures contracts at period end is shown in the schedule of
investments under the caption "Futures Contracts." This amount
reflects each contract's exposure to the underlying instrument at
period end. Losses may arise from changes in the value of the
underlying instruments or if the counterparties do not perform under
the contracts' terms. Gains (losses) are realized upon the expiration
or closing of the futures contracts. Futures contracts are valued at
the settlement price established each day by the board of trade or
exchange on which they are traded.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $11,608,485 and $22,805,234, respectively.
The market value of futures contracts opened and closed during the
period amounted to $11,482,118 and $10,292,684, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a
monthly fee that is calculated on the basis of a group fee rate plus a
fixed individual fund fee rate applied to the average net assets of
the fund. The group fee rate is the weighted average of a series of
rates and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from .1100% to .3700% for the
period. The annual individual fund fee rate is .25%. In the event that
these rates were lower than the contractual rates in effect
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
during the period, FMR voluntarily implemented the above rates, as
they resulted in the same or a lower management fee. For the period,
the management fee was equivalent to an annual rate of .39% of average
net assets .
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the
1940 Act, the Trustees have adopted separate distribution plans with
respect to each class of shares (collectively referred to as "the
Plans"). Under certain of the Plans, the class pays Fidelity
Distributors Corporation (FDC), an affiliate of FMR, a distribution
and service fee. This fee is based on the following annual rates of
the average net assets of each applicable class:
CLASS A .15%

CLASS T .25%

CLASS B .90%*

CLASS C 1.00%**

* .65% REPRESENTS A DISTRIBUTION FEE AND .25% REPRESENTS A
SHAREHOLDER SERVICE FEE.
** .75% REPRESENTS A DISTRIBUTION FEE AND .25% REPRESENTS A
SHAREHOLDER SERVICE FEE.
For the period, each class paid FDC the following amounts, a portion
of which was paid to securities dealers, banks and other financial
institutions for the distribution of each class' applicable shares,
and providing shareholder support services:
PAID TO DEALERS'
FDC PORTION

CLASS A $ 521 $ 521

CLASS T 127,082 127,082

CLASS B 67,287 18,691

CLASS C 6 -

$ 194,896 $ 146,294

Under the Plans, FMR or FDC may use its resources to pay
administrative and promotional expenses related to the sale of each
class' shares. The Plans also authorize payments to third parties that
assist in the sale of each class' shares or render shareholder support
services.
SALES LOAD. FDC receives a front-end sales charge of up to 3.75% for
selling Class A shares (3.25% prior to August 1, 1997), and 2.75% for
selling Class T shares of the fund, respectively. FDC receives the
proceeds of contingent deferred sales charges levied on Class B share
redemptions occurring within three years of purchase and Class C share
redemptions occuring within one year of purchase. Contingent deferred
sales charges are based on declining rates ranging from 3% to 1% for
Class B and 1% for Class C, of the lesser of the cost of shares at the
initial date of purchase or the net asset value of the redeemed
shares, excluding any reinvested dividends and capital gains.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SALES LOAD - CONTINUED
For the period, FDC received the following sales charge amounts
related to each class, a portion of which is paid to securities,
dealers, banks, and other financial institutions:
PAID TO DEALERS'
FDC PORTION

CLASS A $ 5,724 $ 4,474

CLASS T 21,915 15,303

CLASS B 19,218 -*

CLASS C - -*

$ 46,857 $ 19,777

* WHEN CLASS B AND CLASS C SHARES ARE INITIALLY SOLD, FDC PAYS
COMMISSIONS FROM ITS OWN RESOURCES TO DEALERS THROUGH
WHICH THE SALES ARE MADE.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian, transfer agent, and shareholder servicing agent for the
fund's Class A, Class T, Class B, Class C,and Institutional Class
shares. UMB has entered into a sub-arrangements with Fidelity
Investments Institutional Operations Company, Inc. (FIIOC) with
respect to all classes of the fund to perform the transfer, dividend
disbursing, and shareholder servicing agent functions. FIIOC, an
affiliate of FMR, receives account fees and asset-based fees that vary
according to the account size and type of account of the shareholders
of the respective classes of the fund. All fees are paid to FIIOC by
UMB, which is reimbursed by each class for such payments. FIIOC pays
for typesetting, printing and mailing of all shareholder reports. For
the period, each class paid the following transfer agent fees:
TRANSFER AMOUNT % OF
AGENT AVERAGE
NET ASSETS

CLASS A UMB $ 1,254 .36

CLASS T UMB 99,245 .20

CLASS B UMB 14,216 .19

CLASS C UMB 5 .64*

INSTITUTIONAL CLASS UMB 12,291 .18

$ 127,011

* ANNUALIZED
UMB also has a sub-contract with Fidelity Service Company, Inc. (FSC),
an affiliate of FMR, under which FSC maintains the fund's accounting
records. The fee is based on the level of average net assets for the
month plus out-of-pocket expenses.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding
interest, taxes, brokerage commissions and extraordinary expenses)
above the following annual rates or range of annual rates of average
net assets for each of the following classes:
FMR REIMBURSEMENT
EXPENSE
LIMITATIONS

CLASS A .90% $ 29,398

CLASS T 1.00% 19,986

CLASS B 1.65% 15,147

CLASS C 1.75% 1,250

INSTITUTIONAL CLASS .75% 14,954

$ 80,735

In addition, the fund has entered into an arrangement with each class'
transfer agent whereby credits realized as a result of uninvested cash
balances were used to reduce a portion of expenses. During the period,
Class T expenses were reduced as follows under the transfer agent
arrangement.
TRANSFER
AGENT
INTEREST CREDITS

CLASS T $ 1,385

6. DISTRIBUTIONS TO SHAREHOLDERS.
Distributions to shareholders of each class were as follows:
YEAR ENDED NOVEMBER 30,

1997 B 1996 A

CLASS A

FROM NET INTEREST INCOME $ 15,189 $ 1,046

FROM NET REALIZED GAIN 24 -

TOTAL $ 15,213 $ 1,046

CLASS T

FROM NET INTEREST INCOME $ 2,195,690 $ 2,699,983

FROM NET REALIZED GAIN 5,310 -

TOTAL $ 2,201,000 $ 2,699,983

CLASS B

FROM NET INTEREST INCOME $ 274,703 $ 269,283

FROM NET REALIZED GAIN 767 -

TOTAL $ 275,470 $ 269,283

CLASS C

FROM NET INTEREST INCOME $ 26 $ -

FROM NET REALIZED GAIN - -

TOTAL $ 26 $ -

INSTITUTIONAL CLASS

FROM NET INTEREST INCOME $ 308,745 $ 479,181

FROM NET REALIZED GAIN 620 -

TOTAL $ 309,365 $ 479,181

$ 2,801,074 $ 3,449,493

A DISTRIBUTIONS FOR CLASS A ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO NOVEMBER 30, 1996.
B DISTRIBUTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO NOVEMBER 30, 1997.
7. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS

YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,

1997 B 1996 A 1997 B 1996 A

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CLASS A 37,401 9,815 $ 388,486 $ 99,788
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 1,437 108 14,999 1,046

SHARES REDEEMED (7,082) - (74,532) -

NET INCREASE (DECREASE) 31,756 9,923 $ 328,953 $ 100,834

CLASS T 1,237,934 2,035,422 $ 12,868,543 $ 20,912,410
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 150,942 189,811 1,571,556 1,947,724

SHARES REDEEMED (2,228,549) (2,833,821) (23,132,793) (28,990,305)

NET INCREASE (DECREASE) (839,673) (608,588) $ (8,692,694) $ (6,130,171)

CLASS B 162,293 326,024 $ 1,686,065 $ 3,345,475
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 17,600 17,066 183,295 175,043

SHARES REDEEMED (147,606) (227,839) (1,530,078) (2,324,198)

NET INCREASE (DECREASE) 32,287 115,251 $ 339,282 $ 1,196,320

CLASS C 1,185 - $ 12,505 $ -
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 2 - 25 -

SHARES REDEEMED - - - -

NET INCREASE (DECREASE) 1,187 - $ 12,530 $ -

INSTITUTIONAL CLASS 221,521 476,090 $ 2,293,637 $ 4,887,410
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 5,385 6,443 55,968 66,083

SHARES REDEEMED (271,323) (932,023) (2,832,902) (9,523,460)

NET INCREASE (DECREASE) (44,417) (449,490) $ (483,297) $ (4,569,967)

</TABLE>

A SHARE TRANSACTIONS FOR CLASS A ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO NOVEMBER 30, 1996.
B SHARE TRANSACTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO NOVEMBER 30, 1997.
8. REGISTRATION FEES.
For the period, each class paid the following amounts to register its
shares for sale:
REGISTRATION
FEES

CLASS A $ 28,753

CLASS T 14,768

CLASS B 14,527

CLASS C 1,253

INSTITUTIONAL CLASS 14,998

$ 74,299

9. PROPOSED REORGANIZATION.
The Board of Trustees of Fidelity Advisor Intermediate Municipal
Income Fund has approved an Agreement and Plan of Reorganization
("Agreement") between the fund and Fidelity Advisor Short-Intermediate
Municipal Income Fund ("Reorganization"). The Agreement provides for
the transfer of all of the assets and the assumption of all of the
liabilities of Fidelity Advisor Short-Intermediate Municipal Income
Fund in exchange solely for the number of shares of Class A, Class T,
and Institutional Class of the fund having the same relative net asset
value as the outstanding shares of Class A, Class T, and Institutional
Class of Fidelity Advisor Short-Intermediate Municipal Income Fund as
of the close of business of the New York Stock Exchange, on the day
that the Reorganization is effective. The Reorganization can be
consummated only if, among other things, it is approved by the vote of
a majority (as defined by the 1940 Act) of outstanding voting
securities of Fidelity Advisor Short-Intermediate Municipal Income
Fund. A Special Meeting of Shareholders ("Meeting") of Fidelity
Advisor Short-Intermediate Municipal Income Fund will be held on May
4, 1998 to vote on the Agreement. A detailed description of the
proposed transaction and voting information will be sent to
shareholders of Fidelity Advisor Short-Intermediate Municipal Income
Fund in March, 1998. If the Agreement is approved at the Meeting, the
Reorganization is expected to become effective on or about May 28,
1998.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Advisor Series VI and the Shareholders of
Fidelity Advisor Intermediate Municipal Income Fund:
We have audited the accompanying statement of assets and liabilities
of Fidelity Advisor Series VI: Fidelity Advisor Intermediate Municipal
Income Fund, including the schedule of portfolio investments, as of
November 30, 1997, and the related statement of operations for the
year then ended, the statement of changes in net assets for each of
the two years in the period then ended and the financial highlights of
Class A, Class B, Class C, Class T, and Institutional Class for each
of the periods indicated therein. These financial statements and
financial highlights are the responsibility of the fund's management.
Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of November 30, 1997 by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Fidelity Advisor Series VI: Fidelity Advisor
Intermediate Municipal Income Fund as of November 30, 1997, the
results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and the
financial highlights of Class A, Class B, Class C, Class T, and
Institutional Class for each of the periods indicated therein, in
conformity with generally accepted accounting principles.
/s/COOPERS & LYBRAND L.L.P.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
January 16, 1998
DISTRIBUTIONS

The Board of Trustees of Fidelity Advisor Intermediate Municipal
Income Fund voted to pay to shareholders of record at the opening of
business on record date, the following distributions derived from
capital gains realized from sales of portfolio securities, and
dividends derived from net investment income:
PAY DATE RECORD DATE DIVIDENDS CAPITAL GAINS
Class A 12/29/97 12/26/97 $__ $.03
Class T 12/29/97 12/26/97 $__ $.03
Class B 12/29/97 12/26/97 $__ $.03
Class C 12/29/97 12/26/97 $__ $.03
The fund will notify shareholders in January 1998 of these percentages
for use in preparing 1997 income tax returns.
During fiscal year ended 1997, 100% of the fund's income dividends was
free from federal income tax, and 8.72% of the fund's income dividends
was subject to the federal alternative minimum tax.

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
David L. Murphy, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
Thomas D. Maher, Assistant Vice President
Dwight D. Churchill, Vice President
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FOCUS FUNDS
Fidelity Advisor Consumer
Industries Fund
Fidelity Advisor Cyclical
Industries Fund
Fidelity Advisor Financial
Services Fund
Fidelity Advisor Health Care Fund
Fidelity Advisor Natural
Resources Fund
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Growth Fund
GROWTH FUNDS
Fidelity Advisor International Capital Appreciation Fund
Fidelity Advisor Overseas Fund
Fidelity Advisor TechnoQuant
Growth Fund
SM
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Growth & Income Fund
Fidelity Advisor Equity Income Fund
Fidelity Advisor Balanced Fund
TAXABLE INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Mortgage
Securities Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor Municipal Income Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
MONEY MARKET FUNDS
Prime Fund
Treasury Fund
Tax-Exempt Fund

(registered trademark)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR

(REGISTERED TRADEMARK)
INTERMEDIATE MUNICIPAL INCOME FUND - CLASS A, CLASS T, CLASS B
AND CLASS C
ANNUAL REPORT
NOVEMBER 30, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 7 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT CHANGES 10 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS.

INVESTMENTS 11 A COMPLETE LIST OF THE FUND'S INVESTMENTS
WITH THEIR MARKET VALUES.

FINANCIAL STATEMENTS 18 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 27 NOTES TO THE FINANCIAL STATEMENTS.

REPORT OF INDEPENDENT 36 THE AUDITORS' OPINION.
ACCOUNTANTS

DISTRIBUTIONS 37

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 6.48% 32.28% 93.39%
INSTITUTIONAL CLASS

LEHMAN BROTHERS 1-17 YEAR MUNICIPAL 6.45% N/A N/A
BOND INDEX

INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE 5.50% 34.65% 99.90%

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare Institutional Class' returns to
those of the Lehman Brothers 1-17 Year Municipal Bond Index - a total
return performance benchmark for investment-grade municipal bonds with
maturities between one and 17 years. To measure how Institutional
Class' performance stacked up against its peers, you can compare it to
the intermediate municipal debt funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. The past one year average represents a peer
group of 141 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

ADVISOR INTERMEDIATE MUNICIPAL INCOME - 6.48% 5.75% 6.82%
INSTITUTIONAL CLASS

LEHMAN BROTHERS 1-17 YEAR MUNICIPAL 6.45% N/A N/A
BOND INDEX

INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE 5.50% 6.12% 7.16%

AVERAGE ANNUAL TOTAL RETURNS take Institutional Class' cumulative
return and show you what would have happened if Institutional Class
had performed at a constant rate each year.
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19971130 19971212 134539 S00000000000001
FA Int Muni Inc -CL I LB Municipal Bond
00089 LB015
1987/11/30 10000.00 10000.00
1987/12/31 10099.85 10145.10
1988/01/31 10462.03 10506.47
1988/02/29 10504.70 10617.52
1988/03/31 10351.12 10494.36
1988/04/30 10403.16 10574.12
1988/05/31 10436.07 10543.56
1988/06/30 10509.43 10697.81
1988/07/31 10564.11 10767.56
1988/08/31 10569.17 10777.03
1988/09/30 10685.14 10972.10
1988/10/31 10812.26 11165.21
1988/11/30 10777.08 11062.93
1988/12/31 10845.08 11176.11
1989/01/31 10954.84 11407.23
1989/02/28 10889.41 11277.07
1989/03/31 10854.88 11250.12
1989/04/30 11008.30 11517.20
1989/05/31 11172.69 11756.41
1989/06/30 11295.31 11916.06
1989/07/31 11408.03 12078.24
1989/08/31 11371.08 11959.99
1989/09/30 11368.82 11924.35
1989/10/31 11460.00 12070.19
1989/11/30 11585.39 12281.42
1989/12/31 11689.82 12381.88
1990/01/31 11651.69 12323.31
1990/02/28 11755.15 12432.99
1990/03/31 11775.18 12436.72
1990/04/30 11654.09 12346.68
1990/05/31 11866.57 12616.21
1990/06/30 11964.82 12727.10
1990/07/31 12109.21 12914.19
1990/08/31 12038.80 12726.68
1990/09/30 12071.04 12733.93
1990/10/31 12206.04 12964.92
1990/11/30 12400.78 13225.65
1990/12/31 12434.25 13283.18
1991/01/31 12573.09 13461.44
1991/02/28 12687.57 13578.56
1991/03/31 12696.09 13583.44
1991/04/30 12811.18 13764.10
1991/05/31 12913.81 13886.47
1991/06/30 12921.66 13872.72
1991/07/31 13051.09 14041.69
1991/08/31 13155.37 14226.62
1991/09/30 13236.00 14411.85
1991/10/31 13378.14 14541.56
1991/11/30 13411.86 14582.13
1991/12/31 13633.48 14895.06
1992/01/31 13728.72 14929.02
1992/02/29 13744.47 14933.80
1992/03/31 13691.91 14939.32
1992/04/30 13787.68 15072.28
1992/05/31 13938.91 15249.68
1992/06/30 14121.84 15505.57
1992/07/31 14425.97 15970.43
1992/08/31 14319.31 15814.72
1992/09/30 14453.06 15918.15
1992/10/31 14354.35 15761.67
1992/11/30 14619.64 16043.96
1992/12/31 14626.29 16207.77
1993/01/31 14810.45 16396.27
1993/02/28 15210.02 16989.32
1993/03/31 15062.42 16809.74
1993/04/30 15171.20 16979.35
1993/05/31 15238.04 17074.78
1993/06/30 15402.32 17359.76
1993/07/31 15438.16 17382.50
1993/08/31 15711.46 17744.40
1993/09/30 15877.86 17946.51
1993/10/31 15911.44 17981.15
1993/11/30 15791.14 17822.73
1993/12/31 16079.68 18198.97
1994/01/31 16232.46 18406.80
1994/02/28 15815.67 17930.07
1994/03/31 15201.44 17199.95
1994/04/30 15339.16 17345.81
1994/05/31 15479.72 17496.20
1994/06/30 15371.76 17389.30
1994/07/31 15589.28 17708.04
1994/08/31 15651.48 17769.31
1994/09/30 15463.83 17508.46
1994/10/31 15247.42 17197.51
1994/11/30 14933.13 16886.58
1994/12/31 15206.41 17258.25
1995/01/31 15575.94 17751.49
1995/02/28 15974.20 18267.70
1995/03/31 16152.45 18477.60
1995/04/30 16151.32 18499.40
1995/05/31 16523.78 19089.72
1995/06/30 16438.42 18923.64
1995/07/31 16565.21 19103.04
1995/08/31 16776.25 19345.26
1995/09/30 16887.34 19467.72
1995/10/31 17071.14 19750.78
1995/11/30 17238.46 20078.44
1995/12/31 17391.80 20271.40
1996/01/31 17511.97 20424.45
1996/02/29 17458.75 20286.58
1996/03/31 17290.63 20027.32
1996/04/30 17239.39 19970.64
1996/05/31 17224.07 19962.65
1996/06/30 17377.67 20180.05
1996/07/31 17516.75 20363.68
1996/08/31 17518.90 20358.80
1996/09/30 17692.22 20643.82
1996/10/31 17867.39 20877.30
1996/11/30 18161.76 21259.36
1996/12/31 18113.70 21170.07
1997/01/31 18150.70 21210.08
1997/02/28 18304.13 21404.79
1997/03/31 18091.63 21119.46
1997/04/30 18231.36 21296.23
1997/05/31 18445.13 21616.53
1997/06/30 18622.09 21846.74
1997/07/31 19088.29 22451.90
1997/08/31 18926.23 22241.52
1997/09/30 19141.11 22505.53
1997/10/31 19232.44 22650.24
1997/11/28 19338.53 22783.42
IMATRL PRASUN SHR__CHT 19971130 19971212 134545 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Intermediate Municipal Income Fund -
Institutional Class on November 30, 1987. As the chart shows, by
November 30, 1997, the value of the investment would have grown to
$19,339 - a 93.39% increase on the initial investment. For comparison,
look at how the Lehman Brothers Municipal Bond Index, which reflects
the performance of the investment-grade bond market, did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $22,783 - a 127.83% increase.
UNDERSTANDING
PERFORMANCE
HOW A FUND DID YESTERDAY IS
NO GUARANTEE OF HOW IT WILL DO
TOMORROW. BOND PRICES, FOR
EXAMPLE, GENERALLY MOVE IN THE
OPPOSITE DIRECTION OF INTEREST
RATES. IN TURN, THE SHARE PRICE,
RETURN AND YIELD OF A FUND THAT
INVESTS IN BONDS WILL VARY. THAT
MEANS IF YOU SELL YOUR SHARES
DURING A MARKET DOWNTURN, YOU
MIGHT LOSE MONEY. BUT IF YOU CAN
RIDE OUT THE MARKET'S UPS AND
DOWNS, YOU MAY HAVE A GAIN.
(CHECKMARK)
TOTAL RETURN COMPONENTS
YEARS ENDED NOVEMBER 30,

1997 1996 1995 1994 1993

DIVIDEND RETURN 4.74% 4.88% 5.34% 4.44% 5.41%

CAPITAL APPRECIATION 1.74% 0.48% 10.10% -9.87% 2.60%
RETURN

TOTAL RETURN 6.48% 5.36% 15.44% -5.43% 8.01%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

DIVIDENDS PER SHARE 3.83(CENTS) 23.68(CENTS) 47.52(CENTS)

ANNUALIZED DIVIDEND RATE 4.41% 4.49% 4.57%

30-DAY ANNUALIZED YIELD 3.98% - -

30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 6.22% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set
period. If you annualize this number, based on an average net asset
value of $10.56 over the past one month, $10.51 over the past six
months and $10.40 over the past one year, you can compare the class'
income over these three periods. The 30-day annualized YIELD is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period. It
also helps you compare funds from different companies on an equal
basis. The tax- equivalent yield shows what you would have to earn on
a taxable investment to equal the class' tax-free yield, if you're in
the 36% federal tax bracket, but does not reflect payment of the
federal alternative minimum tax, if applicable. If Fidelity had not
reimbursed certain class expenses, the yield and tax-equivalent yield
would have been 3.96% and 6.19%, respectively.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
With investor sentiment, shifting supply/
demand conditions and Federal
Reserve Board policymaking playing
key roles, municipal bonds performed
more or less in line with their taxable
counterparts for the 12 months that
ended November 30, 1997. The
Lehman Brothers Municipal Bond
Index - a broad measure of the
municipal bond market - returned
7.17%, while the Lehman Brothers
Aggregate Bond Index - a barometer
of the taxable bond market - returned
7.55%. Through much of the first half
of the period, the supply/demand
scenario within the muni market was
favorable: low supply and high
demand that led to rising municipal
bond prices. The second half,
however, saw a large amount of new
issuance come to market, and while
demand remained strong, it took time
for investors to become acclimated to
this new supply. In the interim, muni
bond prices fell. The cold months of
winter contrasted with what many felt
was an overheating economy ripe for
an inflation appearance. In late March,
the Federal Reserve Board raised a
key short-term interest rate by 0.25%.
While this move was anticipated by
investors, the market nonetheless
reacted negatively. From April through
mid-September, market conditions
were more friendly. Favorable
economic data soothed inflationary
concerns, while the Fed's reluctance
to raise rates further was another
positive influence. High supply and
low demand resulted in a sub-par
performance for muni bonds in
September and October, but Asian
volatility toward the end of the period
changed momentum. Currency
devaluations meant prices of Asian
goods would become cheaper, further
decreasing the likelihood of inflation.
An interview with David Murphy, Portfolio Manager of Fidelity Advisor
Intermediate Municipal Income Fund
Q. HOW DID THE FUND PERFORM, DAVID?
A. For the 12-month period that ended November 30, 1997, the fund's
Institutional Class shares had a total return of 6.48%. To get a sense
of how the fund did relative to its competitors, the intermediate
municipal debt funds average returned 5.50% for the same 12-month
period, according to Lipper Analytical Services. Additionally, the
Lehman Brothers 1-17 Year Municipal Bond Index returned 6.45% for the
same one-year period.
Q. WHAT WAS YOUR STRATEGY?
A. In terms of the way the fund's investments were allocated among
bonds with various maturities, I focused on bonds with maturities
between five and 12 years. I did that because the municipal yield
curve - which is a graphical representation of the yield of
intermediate-term bonds by ascending maturity dates - was flatter
beyond 12 years. Up to about a 12-year maturity, an
investor was paid an appropriate amount of added income for each
additional year of maturity. It is this additional income that
compensates the investor for the added risk taken on by investing in
the longer-maturity part of the intermediate market. But for bonds
with maturities of 12 years or longer, the extra income for each
successive year was, in my opinion, less attractive given the level of
risk inherent in longer-term bonds. Another key strategy was that I
kept the fund's duration, which measures its sensitivity to changing
interest rates, neutral relative to the Lehman Brothers 1-17 Year
Municipal Bond Index. By doing so, the fund avoids getting whipsawed
by becoming bullish or bearish about the direction of interest rates
at the wrong time.
Q. WHAT WERE SOME OF THE FUND'S BEST PERFORMERS DURING THE PERIOD?
A. The fund's holdings in bonds issued in the state of New York were
winners. The state's finances improved, driven in part by the strength
of the securities industry, an important contributor to New York's tax
revenues. In recognition of this improvement, Standard & Poor's - one
of the municipal bond credit rating agencies - upgraded the credit
rating of some of the state's agencies, which was a positive
development for the prices of the fund's agency holdings. Likewise,
general obligation bonds issued by New York City also performed well
as the city's economy continued to expand. Additionally, bonds issued
by the Massachusetts Industrial Finance Agency on
behalf of Massachusetts Biomedical Research Corp. rose in value
because more investors became better-informed about its positive
financial performance.
Q. WERE THERE ANY DISAPPOINTMENTS DURING THE PERIOD?
A. The return from one of the fund's student loan bonds was
disappointing when prepayments - which rise as borrowers pay back
their loans early - came in a little bit higher than expected.
However, I continued to maintain a fairly heavy weighting in these
bonds because they generally offer attractive yields. With input from
Fidelity's research team, I try to pick student loan bonds that I
think will be prepaid more slowly.
Q. DURING THE PAST YEAR, THERE WAS AN INCREASE IN THE FUND'S ELECTRIC
UTILITY REVENUE POSITION. GIVEN THAT THE ELECTRIC INDUSTRY IS UNDER
PRESSURE FROM THE THREAT OF INCREASED COMPETITION, WHAT FACTORS DO YOU
LOOK FOR WHEN SELECTING THESE BONDS?
A. The electric utility industry is in the early stages of a
transformation from an environment where electric providers enjoy
monopolistic strongholds on a given service area to one where
competition will reign. With that in mind, I have focused on two types
of electric utilities: those that are well-prepared to deal with
increased competition; or those that I believe can meet competitive
challenges down the road but have been severely and unduly penalized
by the market today because of uncertainty surrounding future
deregulation.
Q. WHAT'S AHEAD FOR THE MUNICIPAL MARKET?
A. During the past several years, the amount of outstanding municipal
bonds has shrunk considerably. In the first half of 1997, the low
supply helped the municipal market outperform the taxable bond market.
I expect supply will increase next year. The question is, will there
be enough demand to digest that supply? In my view, that will depend
on how investors perceive the attractiveness of municipals relative to
other fixed-income alternatives and especially to equity investments.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
DAVID MURPHY ON MUNICIPAL
BOND SUPPLY:
"THE SUPPLY OF MUNICIPAL BONDS IS AN
IMPORTANT FACTOR IN THEIR
PERFORMANCE. DURING THE PAST SIX
MONTHS, INTEREST RATES HAVE DECLINED
FAIRLY SIGNIFICANTLY. FALLING INTEREST
RATES PROMPTED MUNICIPAL BOND
ISSUERS TO REFUND, OR REFINANCE,
THEIR OLDER DEBT AT CURRENT LOW
INTEREST RATES, MUCH IN THE SAME
FASHION THAT HOMEOWNERS REFINANCE
THEIR MORTGAGES WHEN THEY SEE AN
OPPORTUNITY TO LOWER THEIR INTEREST
COSTS. AS A RESULT OF A RECENT INCREASE
IN THE SUPPLY OF MUNICIPAL BONDS,
THEIR PRICES TENDED TO LAG U.S.
TREASURIES DURING THE FINAL MONTHS
OF THE PERIOD. IF INTEREST RATES STAY AT
CURRENT LOW LEVELS, OR FALL FURTHER, I
THINK THAT THE SUPPLY OF ISSUED
MUNICIPAL BONDS WILL CONTINUE TO
EXPAND, PERHAPS DRAMATICALLY. THIS
WOULD, IN MY OPINION, LEAD TO FURTHER
UNDERPERFORMANCE RELATIVE TO U.S.
TREASURIES. BUT IF THERE IS A
SIGNIFICANT DECLINE IN THE U.S. STOCK
MARKET, MORE INVESTMENT DOLLARS
COULD BE RE-ALLOCATED TO MUNICIPAL
BONDS."

TOP FIVE STATES AS OF NOVEMBER 30, 1997
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE STATES
6 MONTHS AGO

CALIFORNIA 15.9 18.5

NEW YORK 11.1 12.4

MASSACHUSETTS 7.6 7.3

TEXAS 6.7 6.1

NEW MEXICO 5.7 5.5

TOP FIVE SECTORS AS OF NOVEMBER 30, 1997
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO

GENERAL OBLIGATION 28.9 29.8

EDUCATION 20.3 19.9

ELECTRIC REVENUE 16.7 13.7

HEALTH CARE 6.9 7.8

TRANSPORTATION 6.2 5.1

AVERAGE YEARS TO MATURITY AS OF NOVEMBER 30, 1997
6 MONTHS AGO

YEARS 7.6 7.8

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY
DOLLAR AMOUNT.
DURATION AS OF NOVEMBER 30, 1997
6 MONTHS AGO

YEARS 5.6 5.7

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

MUNICIPAL BONDS - 96.0%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ALASKA - 3.8%
North Slope Borough Gen. Oblig. (Cap. Appreciation)
Series B, 0% 1/1/03 (MBIA Insured) $ 3,000,000 $ 2,381,250 662523RR
ARKANSAS - 1.3%
Arkansas College Savings Gen. Oblig. (Cap. Appreciation)
Series A, 0% 6/1/02 1,000,000 820,000 041039QG
CALIFORNIA - 15.9%
California Edl. Facs. Auth. Rev. Rfdg. (Chapman Univ.)
5.375% 10/1/16 (Connie Lee Insured) 225,000 225,563 130174J2
California Gen. Oblig.
6.25% 10/1/19 400,000 435,500 130627BB
California Hsg. Fin. Agcy. Rev. (Home Mtg.) Series R,
5.35% 8/1/07 (MBIA Insured) (e) 1,000,000 1,045,000 13033EYM
California Poll. Cont. Fing. Auth. Resource Recovery
Rev. (Waste Management, Inc.)
Series A, 7.15% 2/1/11 (e) 500,000 544,375 130535BD
California Pub. Wks. Board Lease Rev. Rfdg.:
(Dept. of Corrections State Prison, Monterey County
Soledad II) Series D, 5.375% 11/1/14 500,000 506,250 13068G4K
(Various California State Univ. Projs.)
Series A, 5.50% 6/1/10 1,000,000 1,056,250 13068GRE
California Rural Home Mtg. Fin. Auth. Lease Rev.
(Rural Lease Purchase) Series A,
4.45% 8/1/01 (MBIA Insured) 1,000,000 1,011,250 130574AA
Long Beach Hbr. Rev. Rfdg. Series A, 5.50% 5/15/07
(FGIC Insured) (e)(g) 250,000 262,188 542424FJ
Los Angeles Unified School Dist. Series A, 6% 7/1/11
(FGIC Insured) 250,000 277,813 544644BA
Los Angeles County Ctfs. of Prtn. (Disney Parking Proj.)
(Cap. Appreciation) 0% 9/1/04 970,000 695,975 5446633R
Sacramento Muni. Util. Dist. Elec. Rev. 1.76% 11/15/08
(FGIC Insured) (a) 1,000,000 1,023,750 7860042C
Sacramento Pwr. Auth. Cogeneration Proj. Rev.:
6% 7/1/02 1,000,000 1,057,500 78605NAE
6.50% 7/1/08 300,000 331,125 78605NAL
San Bernadino County Ctfs. of Prtn. Rfdg.
(Med. Ctr. Fing. Proj.) 5.25% 8/1/04 500,000 512,500 796815NW
West Covina Ctfs. of Prtn. (Queen of The Valley Hosp.)
6.50% 8/15/09 1,000,000 1,086,250 952358BQ
10,071,289
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
COLORADO - 1.7%
Arapaho County Cap. Impt. Tr. Fed. Hwy. Rev.
(Cap. Appreciation) Series C, 0% 8/31/26
(Pre-Refunded to 8/31/05 @ 20.863) (f) $ 3,620,000 $ 524,900
03866ECC
Colorado Health Facs. Auth. Rev. Rfdg.
(Rocky Mountain Adventist) 6.25% 2/1/04 500,000 530,625 1964732L
1,055,525
DISTRICT OF COLUMBIA - 2.5%
District of Columbia Gen. Oblig. Rfdg. Series B-1,
5.40% 6/1/06 (AMBAC Insured) 1,000,000 1,043,750 254760ZF
District of Columbia Redev. Land Agcy. Spl. Tax Rev.
(Washington D.C. Sports Arena)
5.40% 11/1/00 500,000 509,375 254838AE
1,553,125
FLORIDA - 2.6%
Broward County Resource Recovery Rev.
(SES Broward Co. LP South Proj.) 7.95% 12/1/08 500,000 543,750
115064AE
Dade County Wtr. & Swr. Sys. Rev. 6.25%
10/1/10 (FGIC Insured) 500,000 573,750 233620DJ
Jacksonville Port Auth. Rev. Rfdg. (Port Facs.)
5.75% 11/1/09 (MBIA Insured) (e) 500,000 538,750 469466DS
1,656,250
GEORGIA - 2.7%
Georgia Gen. Oblig. Rfdg. Series A, 6.25% 3/1/06 1,000,000
1,118,750 373382QE
Monroe County Dev. Auth. Poll. Cont. Rev. Rfdg.
(Oglethorpe Pwr. Scherer Corp.)
Series A, 6.60% 1/1/07 500,000 566,875 610530BX
1,685,625
HAWAII - 0.4%
Honolulu Hawaii City and County Rfdg.
Series C, 5.50% 11/1/04 (FGIC Insured) 250,000 264,688 438669YX
ILLINOIS - 4.0%
Chicago Midway Arpt. Rev. Series B,
6% 1/1/09 (MBIA Insured) (e) 300,000 321,750 167562BU
Illinois Health Facs. Auth. Rev. Rfdg.
(Felician Health Care, Inc.) Series A,
6.85% 1/1/00 (AMBAC Insured) 1,000,000 1,050,000 45201HZC
Metropolitan Pier & Exposition Auth. Dedicated Tax Rev.
(McCormick Place Expansion Proj.) (Cap. Appreciation):
Series A, 0% 6/15/09 (FGIC Insured) 500,000 281,875 592247CQ
0% 6/15/00 (AMBAC Insured) 1,000,000 895,000 592247BU
2,548,625
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
IOWA - 1.7%
Iowa Student Loan Liquidity Corp. Student Loan Rev.
Series A, 6.35% 3/1/01 $ 1,000,000 $ 1,052,500 462590BT
LOUISIANA - 1.4%
Louisiana Pub. Facs. Auth. Rev. Rfdg. (Student Loan)
Sr. Series A-1, 6.20% 3/1/01 830,000 870,463 54640AJY
MASSACHUSETTS - 7.6%
Boston Rev. (Boston City Hosp.) Series A,
7.625% 2/15/21 (FHA Guaranteed)
(Pre-Refunded to 8/15/00 @ 102) (f) 250,000 276,563 101026AP
Massachusetts Gen. Oblig. Rfdg.
Series A, 5.50% 2/1/11 250,000 255,932 5758234S
Massachusetts Health & Edl. Facs. Auth. Rev. Rfdg.
(Fairview Extended Care) Series B, 4.55% 7/15/02
(MBIA Insured) LOC Bank Boston, N.A. 400,000 400,000 57585JRR
Massachusetts Ind. Fin. Agcy. Rev. (Cap. Appreciation)
(Massachusetts Biomedical Research)
Series A-1, 0% 8/1/02 1,600,000 1,292,000 575914DY
Massachusetts Tpk. Auth. Western Tpk. Rev. Series A,
5.55% 1/1/17 (MBIA Insured) 600,000 610,962 57604EAA
New England Ed. Loan Marketing Corp. Student Loan
Rev. Rfdg. Series B, 5.40% 6/1/00 1,950,000 1,998,750 643898BG
4,834,207
MINNESOTA - 2.1%
Minnesota Gen. Oblig. 6% 5/1/06 1,000,000 1,103,750 604128XY
Minnesota Higher Ed. Facs. Auth. Rev.
(Macalester College) Series 4-C,
5.50% 3/1/12 200,000 206,750 604151UN
1,310,500
NEW JERSEY - 1.8%
New Jersey Econ. Dev. Auth. Market Transition Facs.
Rev. (Sr. Lien) Series A, 7% 7/1/04 (MBIA Insured) 1,000,000
1,142,500 645910AH
NEW MEXICO - 5.7%
Albuquerque Arpt. Rev. Rfdg. 6.75% 7/1/09
(AMBAC Insured) (e) 450,000 519,750 013538EU
New Mexico Edl. Assistance Foundation Student Loan
Rev. Sr. Series IV-A2, 6.65% 3/1/07 2,300,000 2,501,250 647111DH
Rio Rancho Wtr. & Wastewtr. Sys. Rev.
Series A, 8% 5/15/04 (FSA Insured) 500,000 596,875 767175AH
3,617,875
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 11.1%
Metropolitan Trans. Auth. Svc. Contract Rfdg. (Transit Facs.)
Series 5, 6.90% 7/1/05 $ 1,000,000 $ 1,092,500 592597WF
New York City Gen. Oblig. Series G, 5.40% 2/1/01 2,000,000
2,060,000 649664HN
New York City Muni. Assistance Corp. Rfdg.
Series E, 6% 7/1/04 500,000 543,125 626190G5
New York State Dorm. Auth. Rev.
(City Univ. Sys. Consolidated):
Series A, 5.75% 7/1/13 500,000 526,250 649834HV
Series C, 7.50% 7/1/10 500,000 606,250 649832DG
(State Univ. Edl. Facs.)
Series A, 6.50% 5/15/04 500,000 553,750 649835LU
New York State Local Gov't. Assistance Corp.
(Cap. Appreciation) Series A, 0% 4/1/08 1,000,000 601,250
649876AW
New York State Thruway Auth. Hwy. & Bridge Trust Fund
Series A, 5.80% 4/1/09 500,000 530,625 650013AQ
New York State Urban Dev. Corp. Rev.
Series A, 5.50% 4/1/10 (MBIA Insured) 500,000 520,625 650034AX
7,034,375
NORTH CAROLINA - 3.3%
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.:
Rfdg.:
Series B, 6% 1/1/06 1,000,000 1,067,500 658196NS
Series C, 5.50% 1/1/07 200,000 206,000 658196TB
Series A, 5.625% 1/1/03 500,000 518,750 658196NM
North Carolina Muni. Pwr. Agcy. Rfdg..
(Catawba Elec.) 5.90% 1/1/03 250,000 263,125 658203QC
2,055,375
OHIO - 1.2%
Ohio Bldg. Auth. State Facs. (Adult Correctional)
Series A, 5.95% 10/1/14 (MBIA Insured) 500,000 522,500 67755AJY
Ohio Tpk. Commission Tpk. Rev. Series A, 5.60%
2/15/12 (MBIA Insured) 250,000 259,063 67760HBP
781,563
PENNSYLVANIA - 3.9%
Pennsylvania Higher Edl. Facs. Auth. College & Univ.
Rev. Rfdg. (RIDC Reg'l. Growth - Carnegie Mellon
Univ. Proj.) 6% 11/1/04 1,270,000 1,395,413 709171H4
Pennsylvania Hsg. Fin. Agcy. Rfdg. (Residential Dev.)
Series A, 7% 7/1/01 1,000,000 1,077,500 708791ZL
2,472,913
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
RHODE ISLAND - 1.7%
Rhode Island Student Loan Auth. Student Loan Rev. Rfdg.
Series A, 6.55% 12/1/00 $ 1,000,000 $ 1,066,250 762315AQ
SOUTH CAROLINA - 3.7%
South Carolina Ed. Assistance Auth. Rev. Rfdg.
(Guaranteed Student Loan):
Series A-2, 5.40% 9/1/02 1,250,000 1,306,250 837114FC
Series B, 5.70% 9/1/05 (e) 1,000,000 1,050,000 837114FR
2,356,250
TENNESSEE - 0.5%
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Rfdg.
Series A, 6% 2/15/07 (MBIA Insured) (e) 265,000 288,519 586111EH
TEXAS - 6.7%
Hurst Euless Bedford Independent School Dist. Rfdg.
(Cap. Appreciation) 0% 8/15/11
(PSF Guaranteed) 1,000,000 496,250 4478163B
Irving Texas Independent School Dist. (Cap. Appreciation)
0% 2/15/00 (PSF Guaranteed) (g) 250,000 227,813 46799QAC
North East Independent School Dist. Rfdg.
(Cap. Appreciation) Series D, 0% 2/1/00 2,065,000 1,886,894
659154YL
Port Arthur Hsg. Fin. Corp. Single Family Mtg.
Rev. Rfdg. 8.70% 3/1/12 465,000 507,431 733500BV
Texas Pub. Fin. Auth. Bldg. Rev. Rfdg. (Texas Technical
College) 6.25% 8/1/09 (MBIA Insured) 1,000,000 1,132,500 88275MDY
4,250,888
UTAH - 3.8%
Intermountain Pwr. Agcy. Pwr. Supply Rev.:
(Cap. Appreciation)
Series A, 0% 7/1/06 (MBIA Insured) 2,860,000 1,901,900 4588403Z
Rfdg.:
Series A, 6.50% 7/1/08 (AMBAC Insured) 250,000 287,188 45884AFR
Series D, 5% 7/1/21 (MBIA Insured) 200,000 193,000 45884AFE
2,382,088
WASHINGTON - 4.9%
Washington Pub. Pwr. Supply Sys.Rev.:
(Nuclear Proj. #2)
Rfdg. Series C, 7.50% 7/1/03 525,000 582,094 939828MP
5.40% 7/1/12 (b) 2,000,000 2,027,500 939828TX
(Nuclear Proj. #3)
Rfdg. Series C, 5.10% 7/1/07 500,000 514,375 939830PP
3,123,969
TOTAL MUNICIPAL BONDS
(Cost $58,387,323) 60,676,612
CASH EQUIVALENTS - 4.0%
SHARES VALUE
(NOTE 1)
Municipal Central Cash Fund (c)(d)
(Cost $2,516,501) 2,516,501 $ 2,516,501 31635A20
TOTAL INVESTMENTS IN SECURITIES - 100%
(Cost $60,903,824) $ 63,193,113
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
10 Municipal Bond Futures Contracts Dec. 97 $ 1,222,812 $ 16,502
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 1.9%
LEGEND
8. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date. The rate shown is the rate at
period end.
9. A portion of the security was pledged to cover margin requirements
for futures contracts. At the period end, the value of securities
pledged amounted to $50,688.
10. Information in this report regarding holdings by state and
security types do not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
11. At the period end, the seven-day yield of the Municipal Central
Cash Fund was 3.86% The yield refers to the income earned by investing
in the fund over the seven-day period, expressed as an annual
percentage.
12. Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
13. Security collateralized by an amount sufficient to pay interest
and principal.
14. Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investment in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 76.5% AAA, AA, A 72.3%
Baa 14.6% BBB 14.3%
Ba 0.0% BB 0.0%
B 0.0% B 0.1%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by Moody's or S&P amounted to 0.0%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investment in securities, is as follows:
General Obligation 28.9%
Education 20.3
Electric Revenue 16.7
Health Care 6.9
Transportation 6.2
Housing 5.8
Others (individually less than 5%) 15.2
TOTAL 100.0%
INCOME TAX INFORMATION
At November 30, 1997 the aggregate cost of investment securities for
income tax purposes was $60,903,824. Net unrealized appreciation
aggregated $2,289,289, of which $2,290,144 related to appreciated
investment securities and $855 related to depreciated investment
securities.
The fund hereby designates approximately $68,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
At November 30, 1997, the fund was required to defer approximately
$113,000 of losses on futures contracts.
FINANCIAL STATEMENTS